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The Effect of Perceived Novelty on the Adoption of Information Technology Innovations: A Risk/Reward Perspective

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ABSTRACT

A fundamental characteristic of any innovation is its novelty, the newness or freshness of the innovation in the eyes of the adopter. Past research has often considered novelty to be inherent to an information technology (IT) innovation, yet it is also likely that perceptions of novelty differ widely across individuals. Nevertheless, the role that the novelty of an IT innovation plays in adoption is not well understood. The primary goal of this research effort is to frame the perceived novelty of an IT innovation as a salient affective belief in the nomological network related to adoption. Further, we examine how perceived novelty influences the way individuals reconcile their perceptions of risk versus reward when considering the adoption of an IT innovation. Two empirical studies with 424 and 138 participants, respectively, examine the effect of perceived novelty on IT innovations from a risk/reward perspective. Results indicate that perceived novelty is a salient affective belief that plays a significant role in the adoption of IT innovations. Implications for both theory and organizational decision making are examined.

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