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UNIVERSITY OF ECONOMICS IN HO CHI MINH CITY International School of Business TRUONG THI HOANG NGOC ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES: THE CASE OF FACEBOOK IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City -Year 2014 UNIVERSITY OF ECONOMICS IN HO CHI MINH CITY International School of Business TRUONG THI HOANG NGOC ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES: THE CASE OF FACEBOOK IN VIETNAM ID: 22120133 MASTER OF BUSINESS (Honours) SUPERVISOR: ASSOC. PROF. LE NGUYEN HAU Ho Chi Minh City -Year 2014 ACKNOWLEDGEMENT At the first of my thesis, I would like to thank all those people who made this thesis possible and an unforgettable experience for my studying. Foremost, I would like to express my deep appreciation to my supervisor, Assoc. Prof. Le Nguyen Hau who instructed and helped me enthusiastically during period of the thesis. Besides my supervisor, I am grateful to the supervisory board for providing me with their available advices and patient when I need. I would like to express my gratitude to all ISB staffs that supported necessary materials and helped summit my papers. Last but not the least; I would like give my special thanks my family for supporting me spiritually throughout my life. Ho Chi Minh City, December, 8, 2014 TRUONG THI HOANG NGOC ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES i ABSTRACT The rise of social networking sites in recent rise has aroused the discussion among the society. Social networking sites not only enable people to connect with friends, but also can conduct various studies. For example, people can create events; people are able to open up new relationships on the internet. This study discusses antecedents of the adoption of social network sites the case of Facebook in Vietnam. Facebook is chosen for this study as it is the most popular online social networking sites. A survey involving 279 respondents is conducted. The research finds out the three variables (initiating and maintaining relationships, privacy, and entertainment) had a positive influence to the intention to adopt Facebook of university students in Ho Chi Minh City, which completely matched with the discovery discussed in literature. The strongest positive relationship factor is entertainment to adopt Facebook. It is also found that the effective difference antecedent factors on the adoption of Facebook when the sample was related into two sub-groups based on the level of respondent’s extraversion. Key words: adoption, social networking sites, Facebook, relationships, privacy, entertainment, extraversion. ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES ii TABLE OF CONTENTS ABSTRACT i LIST OF TABLES v LIST OF FIGURES v ABBREVATIONS v CHAPTER 1. INTRODUCTION 1 1.1. BACKGROUND 1 1.2. RESEARCH PROBLEMS 2 1.3. RESEARCH PURPOSE 3 1.4. SCOPE OF THE RESEARCH 4 1.5. RESEARCH STRUCTURE 4 1.6. SUMMARY 5 CHAPTER 2. LITERATURE REVIEW AND HYPOTHESES 6 2.1. TECHNOLOGY ACCEPTANCE MODEL (TAM) 6 2. 2. INTENTION TO ADOPT 7 2.3. INITIATING AND MAINTAINING RELATIONSHIP 8 2.4. PRIVACY 9 2.5. ENTERTAINMENT 11 2.6 MODERATING VARIABLE 12 2.7. RESEARCH FRAMEWORK 13 2.8 SUMMARY 14 CHAPTER 3. RESEARCH METHODS 16 3.1. RESEARCH PROCESS 16 3.2. QUESTIONNAIRE 17 3.2.1. Measurement scales 17 3.2.2. Draft questionnaire 20 3.3. PILOT STUDY 20 ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES iii 3.4. SAMPLE AND DATA COLLECTION 21 3.4.1. Sampling 21 3.4.2. Data collection 22 3.5. DATA ANALYSIS METHODS 22 3.5.1. Reliability analysis 22 3.5.2. Exploratory factor analysis (EFA) 23 3.5.3. Multiple regression analysis 23 3.6. SUMMARY 24 CHAPTER 4. DATA ANALYSIS AND RESULTS ………………………… 25 4.1. DESCRIPTIVE ANALYSIS 25 4.2. MEASUREMENT OF MEASUREMENT SCALES 26 4.2.1. Reliability analysis 26 4.2.2. Exploratory factor analysis (EFA) 29 4.2.2.1. EFA for independent variables 29 4.2.2.2. EFA for dependent variables 31 4.2.2.3. EFA for moderating variables 31 4.2.3. Pearson correlation coefficient 33 4.3. HYPOTHESES TESTING USING MULTIPLE REGRESSIONS 35 4.3.1. Checking assumption of Multiple Regression 35 4.3.1.1. Sample size 35 4.3.1.2. Assessment multicollinearity of independent variables 35 4.3.1.3. Normality, linearity, homoscedasticity and outliers 35 4.3.2. Evaluating the model 35 4.3.3. Evaluating the independent of variables and checking hypotheses of model 37 4.3.4. Test the effect of moderating variables 38 4.4. SUMMARY 41 CHAPTER 5. CONCLUSIONS AND IMPLICATIONS 42 ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES iv 5.1. RESEARCH OVERVIEW 42 5.2. RESEARCH FINDINGS 42 5.3. MANAGERIAL IMPLICATIONS 44 5.4. RESEARCH LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH 45 REFERENCES 46 QUESTIONNAIRE 53 BẢNG CÂU HỎI 56 APPENDICES 59 APPENNDIX 1: DESCRIPTIVESTATISTICS 59 APPENNDIX 2: CRONBACH’S APLPHA WITH FULL FOR EACH CONSTRUCTS 62 APPENNDIX 3: THE FIRST TIME RUNNING FACTOR ANALYSIS EIGENVALUES (FOR INDEPENDENT VARIABLES) 64 APPENNDIX 4: THE SECOND TIME RUNNING FACTOR ANALYSIS EIGENVALUES (FOR DEPENDENT VARIABLES) 65 APPENNDIX 5: THE THIRD TIME RUNNING FACTOR ANALYSIS – EIGENVALUES (FOR MODERATING VARIABLES) 66 APPENNDIX 6: HIGHT EXTRAVERSION 67 APPENNDIX 7: LOW EXTRAVERSION 68 ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES v LIST OF TABLES Table 1: Scales 17 Table 2: Cronbach’s alpha reliability 22 Table 3: Sample Description 25 Table 4: Cronbach’s alpha test results 28 Table 5: Rotated Component Matrix 30 Table 6: Factor loading of intention variable 31 Table 7: Factor loading of moderating variable 32 Table 8: EFA results 33 Table 9: Correlation among variables 34 Table 10: R Square value (R 2 ) 36 Table 11: Anova 37 Table 12: Coefficients 37 Table 13: Comparison of coefficients 39 LIST OF FIGURES Figure 1: The research model and hypotheses 14 Figure 2: Research process 16 Figure 3: Histogram 69 Figure 4: Normal P-P Plot 69 Figure 5: Scatterplot 70 ABBREVATIONS SNS: Social networking sites. TAM: Technology Acceptance Model. FFM: Five- Factor Model. KMO: Kaiser-Meyor-Olkin. EFA: Exploratory Factor Analysis. ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 1 CHAPTER 1: INTRODUCTION The chapter introduces the research background, present the research problem as well as the scope of research. Furthermore, the research structure is also outline. 1.1. BACKGROUND In this new era, social networking sites (SNS) have achieved a dominant breakthrough. Millions of people are now attached with this and both online and conventional activities result in the expanded platform that affects conventional way of thinking. The popularity of social networking is highly demonstrable by the number of people using those (Cheung, Chiu & Lee, 2010).What motivated people to use social network has been an interesting not only in business but also in academic field as well. Bartlett-Bragg (2007) defined social networks sites as a “range of applications that augments group interactions and shared spaces for collaboration, social connections, and aggregates information exchanges in a web-based environment” (p.3). While SNS have integrated a wide range of technical features, they basically consist of a “profile” and a list of “Friends” who are also users of the system (Boyd & Ellison, 2008). The user has complete control over the content of his or her profile, and in some SNS, its visibility to other users as well. Besides the “profile” and “Friends” list, these SNS offer “commenting” and “private messaging” features, photo-sharing and video-sharing capabilities too. People are motivated to get involved in social network sites for a number of reasons. Making new friends, communicating, and connecting to other people are one of the prime reasons for using social networks (Lenhart & Madden, 2007). One of the most popular SNS is Facebook (Mazman & Usluel, 2010; Roblyer, McDaniel, Webb, Herman & Witty, 2010) which is clear leader of the social networking sector. Facebook is essentially a personalized profile of which users have complete control over its content. A user’s profile can be viewed by other users in the same “network” by default, unless the profile owner specifies otherwise. According to Facebook statistics, its users spend over 700 billion minutes per month on Facebook. The Facebook phenomenon is happening all over the world. ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 2 Facebook is appropriate for the current study as it is the most popular online social networking site among university students. Originally developed by Mark Zuckerberg, Dustin Moskovitz and Chris Hughes in 2004 at Harvard University in order to provide Harvard students with a place in which they could keep in contact with their classmates and could share study-related information, also they can share creations, tell stories, and interact with others (Roblyer et al., 2010). Facebook also allow individuals to share thoughts, ideas, pictures and other content with friends and family members, and to connect with either former or new friends, making the platform very popular with university students (Ellison, Lampe & Steinfield, 2007; Golder, Wilkinson & Huberman, 2007; Boyd & Ellison, 2008; Raacke & Bonds-Raacke, 2008). In addition, it creates an online social space where university students can build and maintain social capital with others (Ellison et al., 2007; Lytras & Garcia, 2008). It is particularly important for university students to build social capital with the industry (Chakrabarti & Santoro, 2004). 1.2. RESEARCH PROBLEMS Instead of maintaining a personal account, Facebook helps user, either individual or organization, to create and present information related to a specific subject such as brands, celebrity, or sports. The Facebook owner can then upload pictures, videos, or post messages in it. For people who are interested in the subject of the Facebook, they can easily subscribe it by clicking the “Like” button and post message in it to communicate with the business. Once subscribed, the updates of Facebook will be automatically shown in subscribers’ personal page for them to browse or leave comments. In this manner, Facebook creates a social space for people to conveniently interact and share information with each other. Considering the massive users’ base of Facebook and their intensive usage, major brands, such as Dell, Samsung have created dedicated Facebook page to increase their presence in the cyber world and expect to build direct relationship with their customers. Many previous studies investigated the Internet uses and SNS adoption. Whether [...]... are included in the end of thesis ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 5 1.6 SUMMARY The research begins the introduction by discussing the research background and the problem statement is defined to take a closer look at using Facebook in Viet Nam In order to narrow down the topic area, the scope of research examined the using Facebook of university students in Ho Chi Minh City The. .. following questions: What are the key factors affecting the intention to adopt Facebook of users in Vietnam? How is impact of these factors on intention to adopt Facebook of uses evaluated in Vietnamese context? ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 4 1.4 SCOPE OF THE RESEARCH The research is conducted in Ho Chi Minh City with the respondents who are the university students in Ho Chi Minh... Model and Theory of Reasoned Action as the framework ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 15 The following three factors have been identified as common determinants of predicting the intention to use Facebook Therefore, the researcher selected for closer investigation in this research: Initiating and maintaining relationship, Privacy and Entertainment Moreover, the effects of the above-mentioned... adopt Facebook among university students to understand the features of social networking sites and the reasons which may affect users The main objective of this study is to find factors which affect the intention to adopt Facebook; it also serves as reference to the operators of social networking websites Consequently, in the term of the intention to adopt Facebook of users, the research questions of the. .. Facebook 2.4 PRIVACY Social networking sites have changed the levels of privacy among friends and acquaintances Further, the growth of social networking sites has increased the need for concern about information privacy Specifically, information privacy is defined as the interest individuals have in controlling, or at least significantly influencing, the handling of data about themselves (Clarke, 1988)... social I expect to adopt networking site in the Facebook in the near near future future I intend to use social I intend networking Website Facebook to adopt ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 20 3.2.2 Draft questionnaire The questionnaire using a five-point Likert scale was employed to collect the data on the factors of the research model Items measuring for the factors were mostly... reviews, the relationship between factors affect to the intention to adopt Facebook is briefly described in the figure 1: ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES Initiating & maintaining 14 H1 Relationships Privacy Intention to H2 Adopt Facebook H3 Entertainment H4 Moderating Variable: Personal Orientation (Extraversion) Figure 1: The research model and hypotheses The hypotheses of this... hypotheses of this research include: H1: There is a positive impact of initiating and maintaining relationships on the intention to adopt Facebook H2: There is a positive impact of privacy on the intention to adopt Facebook H3: There is a positive impact of entertainment on the intention to adopt Facebook H4: The impacts of the above-mentioned antecedents on intention to use Facebook are moderated by... ADOPTION OF SOCIAL NETWORK SITES 7 modified the original TAM by including Instructor Characteristics; Student Characteristics were added to his of Social Network System in Classroom: Antecedents of Edmodo © Adoption Based on existing studies, this research also use TAM as the base model and extend the model by including other variables which this study believe are important for the studies of Facebook adoption. .. on the adoption of Facebook are moderated by the level of user’s extraversion The reviewed literature works as a good basis in developing a research model to measure the factors that influence users’ intention to adopt Facebook and their decision on whether or not to adopt Facebook ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 16 CHAPTER 3: RESEARCH METHODS This chapter includes five parts: the . UNIVERSITY OF ECONOMICS IN HO CHI MINH CITY International School of Business TRUONG THI HOANG NGOC ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES: THE CASE OF FACEBOOK IN VIETNAM. on the internet. This study discusses antecedents of the adoption of social network sites the case of Facebook in Vietnam. Facebook is chosen for this study as it is the most popular online social. are included in the end of thesis. ANTECEDENTS OF THE ADOPTION OF SOCIAL NETWORK SITES 5 1.6. SUMMARY The research begins the introduction by discussing the research background and the problem