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Andrew Spencer

Technology Adoption
in the Caribbean
Tourism Industry
Analyzing Service
Delivery in the
Digital Age
Technology Adoption in the Caribbean Tourism
Industry
 Andrew Spencer

Technology Adoption
in the Caribbean
Tourism Industry
Analyzing Service Delivery in the Digital Age
Andrew Spencer
Tourism Product Development Company
Kingston, Jamaica

ISBN 978-3-030-61583-3 ISBN 978-3-030-61584-0 (eBook)

https://doi.org/10.1007/978-3-030-61584-0

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Switzerland AG 2021
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights
of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and
retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc.
in this publication does not imply, even in the absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore free for
general use.
The publisher, the authors and the editors are safe to assume that the advice and informa-
tion in this book are believed to be true and accurate at the date of publication. Neither
the publisher nor the authors or the editors give a warranty, expressed or implied, with
respect to the material contained herein or for any errors or omissions that may have been
made. The publisher remains neutral with regard to jurisdictional claims in published maps
and institutional affiliations.

This Palgrave Macmillan imprint is published by the registered company Springer Nature
Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
 Contents

1 Introduction 1
Challenges in the Industry 5
The Research Context 8
Methodology 12
The Research Process 15
Limitations and Impediments 22
The Structure of the Book 22
References 23

2 Leadership and Technology: Understanding Adoption

Practices 27
Diffusion and Adoption 38
The Digital Divide 52
Ownership and Leadership 59
The Resource-Based View 67
Emergent Frameworks 70
References 73

3 Internal Firm Factors: An Examination of Travel

Companies Resource Base 87
Case Examples 92
Firm Strategy 95
Leadership and Strategy Formulation 98
References 108
v
vi CONTENTS

4 External Factors: The Digital Divide, Closing the Gap 111

Culture and Leadership 116
The Digital Divide 118
References 124

5 Transactional and Transformational Leaders: Their

Influence on Technology 127
Intellectual Stimulation 134
Leadership and Strategy 137
Transactional vs. Transformational: Leadership
Characteristics for Technology Adoption 139
Leadership Background 140
Risk Taking and the Owner-Manager 145
Leadership Characteristics for Technology Adoption
(Owner-Managed, Small Firms) 148
Education 149
Previous Work Experience 150
Technology Experience 151
Risk Aversion 151
Family Composition 152
Intellectually Stimulating Traits 153
References 155

6 The Applicability of an Innovative Theoretical Model

and Its Implications 157
Theory and Concepts 157
Adoption Stages 160
The Adopters 161
Contribution to Theories of Staged Technology Adoption 163
Resistors 164
Caretakers 165
Stabilizers 166
Reactors 168
Transformers 169
Strengths of the Model 171
Limitations of the Model 174
References 174
 CONTENTS vii

7 Conclusion 177
References 188

Appendix 191

References 195

Index 233
 List of Figures

Fig. 1.1 Full stack of steps in the innovation interdependence

perspective (Source Author’s Creation) 16
Fig. 2.1 Firm technology adoption framework: first-order iteration
(Source Author’s creation) 72
Fig. 2.2 Technology decision-making input framework (Source
Author’s creation) 73
Fig. 5.1 Formal education level (Source Author’s creation) 141
Fig. 5.2 Highest qualification and perceptions of internet
importance in sales and marketing (Source Author’s
creation) 142
Fig. 5.3 Cross-tabulation: highest qualification and perceptions
of online market importance (Source Author’s creation) 142
Fig. 5.4 Frequency of internet users (leaders) (Source Author’s
creation) 144
Fig. 5.5 Owner-manager’s risk taking (Source Author’s creation) 146
Fig. 6.1 Revised technology decision-making input framework
(Source Author’s creation) 158
Fig. 6.2 Resistors (Source Author’s creation) 165
Fig. 6.3 Caretakers (Source Author’s creation) 166
Fig. 6.4 Stabilizers (Source Author’s creation) 167
Fig. 6.5 Reactors 168
Fig. 6.6 Transformers (Source Author’s creation) 169
Fig. 6.7 Leadership typologies for staged technology adoption
(owner-managed small firms) (Source Author’s creation) 170

ix
 List of Tables

Table 5.1 Cross-tabulation: personal technology use

and owner-manager’s risk taking 147
Table 5.2 Cross-tabulation: highest qualification and internet sales
investment risk 147

xi
 CHAPTER 1

Introduction

According to the World Travel and Tourism Council (WTTC), the

tourism industry in the Caribbean contributes to 13.9% of the region’s
gross domestic product (GDP).1 Consequently, the state of the tourism
industry is exceptionally important to the Caribbean. However, the sector
is remarkably vulnerable to both internal and external shocks; including
natural disasters, global pandemics, economic crisis among other factors.
In light of the sector vulnerability there is a need to mitigate the impact
of these vulnerabilities, especially in light of the most recent global
pandemic—Covid-19. Which has significantly, reduced the movement of
people across the world, which has tremendous economic impact on the
Caribbean key foreign exchange sources. The use and widespread inte-
gration of Information communication Technologies has the ability to
mitigate the challenges experienced by the industry and improve the
provision of service.
As technology develops and firms increase their adoption of Infor-
mation and Communication Technologies (ICT), there comes a shift
in focus from what one may call “the Big Picture” to more bespoke
solutions that are appropriate for diverse, individualized scenarios. This
is not to say that more orthodox or mainstream management practices

1 The World Tourism and Travel Council. (2019). Economic Impact Reports. Retrieved
from https://wttc.org/Research/Economic-Impact.

© The Author(s) 2021 1

A. Spencer, Technology Adoption in the Caribbean Tourism Industry,
https://doi.org/10.1007/978-3-030-61584-0_1
2 A. SPENCER

have been discarded. While these still prove effective, especially in smaller
owner-managed travel firms, it does illustrate an expansion of perspectives.
The use of computers and other technologies in the travel industry is
not a new idea. Computers have been in use by travel agencies since the
1950s with the creation of the first reservation systems—TIS and Gulliver
during the 1980s,2 and major global distribution systems (GDSs) like
SABRE and Amadeus in the 1990s. Over the years these systems have
evolved into more advanced tourist information systems.
We see this trend continuing today, resulting in a myriad of travel reser-
vation and monitoring systems across the internet; each of them able to
access, and benefit from, the others’ information databases and architec-
tures. This has resulted in the most leveled playing field the industry
has witnessed to date, with numerous options in products and services
available to both producers and consumers.3
Emerging characteristics of this trend include the development of new
value chains and systems. This new infrastructure allows industry players
to take increased advantage of the opportunities presented by applying
the latest technologies.4 However, in order for a travel agency to take
advantage of these benefits, certain preconditions must be met.
Moital et al. (2009) make it clear that the adoption of this new
paradigm requires familiarity with, or at least a basic understanding of,
the tools inherent in this new paradigm. Specifically, computers and the
internet.
A travel firm’s staff requires a certain minimal level of fluency in
computer literacy. They may not need to be able to code programs, but
they do need to understand how to interact with computer hardware and
software. This is a fundamental prerequisite to being able to access and
navigate the internet.
The staff also require, at the very least, a basic level of understanding
of the internet itself. This is necessary for them to be able to effectively
engage in activities such as internet sales, also referred to as e-commerce,
and internet marketing. These may also be referred to as SEM (Search
Engine Marketing) and SEO (Search Engine Optimization). Internet

2 Werthner (1995, 1996), Werthner and Klein (1999).

3 Poon (2001).
4 Buhalis (2002).
 1 INTRODUCTION 3

Marketing is a wider term, encompassing both SEM and SEO, but in

common parlance, they tend to be used interchangeably.
This stepwise progression allows us to appreciate the dependencies
between each step. This also establishes the notion that engagement at
each step assumes previous engagement (and experience) in preceding
steps. We may refer to this as the “innovation interdependence perspec-
tive.” From this perspective, we can project a full stack of progressive steps
as follows:
Since 2000 it’s been argued that different regions in the world are
at different levels when it comes to being able to integrate and utilize
the internet; this is referred to as “internet readiness.” While America
and Canada were strong early adopters, Europe, in the nineties and early
2000s, had been a year and a half behind North America when it came to
levels of internet adoption.5 However, while Europe has essentially caught
up to North America, countries in the developing world, including the
Caribbean, are lagging behind, and there are unfortunate consequences
for countries and businesses that are slow to integrate ICTs.
Most travel agencies in the Caribbean are focused on the outbound
traveler. As such, they may not experience issues like disintermediation—
the consolidation and reduction of intermediaries—at the same pace as
more developed countries. This has resulted in a lack of strategic planning
and proactive measures on the part of local travel agencies.
The reason for this was partially the perception that most Caribbean
people did not place much trust in the concept of making purchases on
the internet, reflected in a study by Lin.6 This led to certain consid-
erations. Firstly, most travel firms in the Caribbean are focused on the
outward-bound market. Secondly, there is a gap with regard to access to
technology (what may be termed as the “digital divide”) between tourists
and Caribbean travel destinations. These considerations raise the question
of whether the inbound travel market is a gap that the local travel firms
can fill if they can bridge the digital divide.
There is, however, another disincentive for local firms in catering to the
inbound market. Inbound travel does not provide a commission compa-
rable to what they may make in outbound travel. This is, unfortunately,
a shortsighted view as it fails to take into consideration opportunities

5 Law and Leung (2000).

6 Lin et al. (2009).
4 A. SPENCER

presented through value-adding and dynamic packaging, i.e., creating

travel solutions on a more individualized basis.
More recently, the digital divide has been shrinking, but according to
Minghetti and Buhalis,7 there are still significant gaps between Caribbean
destinations, developed nations and the tourists thereof. This will lead
to varying levels of “digital exclusion,” where certain companies lose
business opportunities because of some technological inadequacy.
Minghetti and Buhalis have conducted research on the digital divide
in the context of the tourism industry. Their work highlights chal-
lenges in areas such as marketing and communications between tourism-
generating countries and tourist destinations. Tourists and enterprises
from these developed, tourism-generating regions interact on electronic
platforms. These platforms reduce the need for brick-and-mortar loca-
tions where enterprises and clients have to interact face-to-face. According
to Minghetti and Buhalis,

The study of the digital divide is critical for less technologically devel-
oped regions that need to expand their ICT usage to be able to promote
their offerings, interact with consumers, and reduce their dependence on
intermediaries.8

One important consideration from the study is the fact that tourists who
are not tech-savvy, and destinations that are behind current trends in ICT,
still rely on the older way of doing things and, naturally, utilize travel
agencies with physical locations. This scenario applies to the Caribbean.
There appears to still be a fairly high dependence on physical interme-
diaries, i.e., travel agencies with physical locations that clients can visit for
face-to-face engagement. Specifically, The Jamaica Tourist Board, along
with other enterprises in the tourism and hospitality industry, ensure that
relationships are maintained with intermediaries such as The American
Society of Travel Agents and The Association of British Travel Agents.
Due to this state of affairs, three issues become clear.
Tech-savvy tourists from developed countries who prefer to conduct
their travel arrangements online may not be captured by more traditional
marketing efforts in the Caribbean.

7 Minghetti and Buhalis (2010).

8 Minghetti and Buhalis (2010, p. 278).
 1 INTRODUCTION 5

The Caribbean’s image as a tourist destination may be negatively

affected if they are unable to interact with the islands’ tourism and travel
options via the internet. According to Govers, “covertly induced and
autonomous agents, in particular, have a dramatic influence” over the
image of a travel destination in the minds of consumers.9 These agents
include television, magazines, and the internet itself. And in the case of
Jamaica, where the Jamaica Tourist Board is focusing most of its efforts on
television advertisements,10 online promotion and engagement are paid
little attention; this is the reality for many other Caribbean islands as well.
As a result, the television advert may intrigue potential tourists, but be
disappointed when attempting to gain more information or seek booking
options online. Such circumstances wear away at a destination’s image.
Travel agencies within the Caribbean have significantly lessened over
the past decade. Regardless, they do play an active role in driving inbound
travel and tourism to the islands. They are typically focused on the
outbound market due to the fact that they do not receive commission
on inbound travel sales. The key to the issues previously highlighted the
online presence of Caribbean islands and their travel firms. Currently,
travel agencies receive little attention from local statutory bodies. The
potential opportunities provide an excellent argument for greater govern-
mental collaboration and support. The challenge is to motivate existing
travel firms to adopt ICT beyond simply an exchange of emails, and to
establish a stronger and more vibrant online presence. Right now, only
about 5% of local travel companies have active websites. So, the question
is, how do we motivate these companies to more readily adopt ICT and
make it a pivotal component of their company strategy?

Challenges in the Industry

This work was motivated by the fact that the Caribbean travel industry is
facing significant challenges. While the disintermediation that advanced
economies already experienced is only recently taking place in the
Caribbean travel industry, we have already seen a significant reduction
in the number of firms. For instance, according to the Jamaican Associ-
ation of Travel Agents (JATA), between 1999 and 2009 the number of

9 Govers et al. (2007, p. 19).

10 Williams and Spencer (2010).
6 A. SPENCER

travel agencies declined from 105 to 43; while in Trinidad and Tobago
the number of agencies moved from 11 to 5.
Upon further assessment, many firms in Jamaica, The Bahamas, and
Trinidad and Tobago were not implementing changes to similar opera-
tional procedures as those that were taking place in the global market-
place. The operational component that saw the least change was the use
of technology.
After the adoption of Global Distribution Systems (primarily Sabre and
Amadeus) in the 1990s, adoption of new technologies stalled. This was
considerably more the case with technologies that directly impacted sales
and marketing, despite the growing popularity of the internet. This obser-
vation leads one to wonder why domestic travel agencies were so slow to
adapt despite the obvious need for evolution in their business models.
It would be beneficial to understand why firms with similar character-
istics, and in similar contexts, have varying levels of ICT adoption. This
research will look at a number of possible factors, with the aim of deter-
mining the prime factor(s), as well as investigating pertinent issues and
challenges in the global environment.
Studies that focus on technology adoption are usually placed in one
of two phases, pre-internet or post-internet. The most renowned pre-
internet phase studies are based on earlier works by Rogers (1962) and
Davis (1989). These two schools of thought have fundamental differences
in understanding what drives the adoption of technology.
Roger’s perspective, termed the “diffusion of innovations,” focuses on
innovation, communication, and the role of society. Davis, on the other
hand, sees adoption from the perspective of the user and their assessment
of this new technology. Is it easy to use? Does it do what I need it to? This
school of thought is referred to as the “technology acceptance model.”
When it comes to post-internet phase studies, the general consensus is
that the internet is the most widespread, most pervasive technology ever
devised. Even more so than those technological developments that led
to improvements in farming production, such as those studied by Rogers
(1962).
It has been observed over the last 30 years that industrial economies
have evolved into information economies. According to Parker (1988), it
is information, not land nor capital, that will drive the creation of wealth
and prosperity for the foreseeable future. Technology has permanently
changed the way that the world does business. Drucker (1990) takes it
 1 INTRODUCTION 7

a step further by arguing that, due to this shift, knowledge now has the
greatest impact as a means of production.
Naturally, those businesses that are quick to adopt technologies that
facilitate the transfer of knowledge (ICTs) gain a competitive advantage.11
Unfortunately, providing a simple definition of ICT is not an easy thing
to do.
Buhalis (2002) shows that ICTs include hardware, software, group-
ware (software that allows multiple remote individuals to collaborate on
a common project simultaneously), and NetWare (hardware and soft-
ware that facilitates communication between computers, including other
devices, on a digital network). But other major components of ICT are
the capacities and capabilities of the users of ICTs to develop, program,
and maintain these technologies. The best technologies in the world are
only as powerful as the capabilities of those who are using them. Given
how broad the topic of ICT is, it’s important to point out that the main
focus of this book is the single most pervasive technology of them all, the
Internet.
While the internet was originally conceived and had its tentative start in
1969, it was not until 1991, more than twenty years later, that it became
publicly accessible and grew into the internet we know today.
The internet became one of the most ubiquitous technologies ever,
spreading across regions faster than any technology before it. Its impact
and potential are so profound that organizations and businesses world-
wide had to reassess their policies, procedures, and general ways of doing
things.12
Other post-internet phase theorists argue that, apart from affecting
various aspects of business, the internet has led to the modification and
restructuring of entire economic sectors.13 The internet demonstrated
this amazing ability to penetrate and transform these multiple economic
sectors and industries, both as an external force and as an internal driver.

11 Porter (2001).
12 Klein (1996), Grieger (2003), Amit and Zott (2001).
13 Kalakoa and Whinston (1996), Gatty (1998), Ghosh (1998), Timmers (1998), Wirtz
(2001).
8 A. SPENCER

The Research Context

In the Caribbean, travel and tourism is one of the leading sources of
economic activity, as such the industry is one of the leading industry
providers of jobs in Jamaica, and the Bahamas whether directly or
indirectly. While in Trinidad it contributes significantly in regards to
employment, with room for tremendous improvement. That being the
case, it is vital that we gain an understanding of the local economic
environment in which travel and tourism firms operate.
The Bahamas and Trinidad and Tobago can be classified as high-
income countries while Jamaica is a middle-income country. Both Jamaica
and The Bahamas are oil-importing countries. The typology of these
Caribbean countries under examination is slightly nuanced with The
Bahamas being a predominantly customer service export or tourism
industry; Jamaica on the other hand can be classified as a mixed
goods export/customer service (or tourism) industry while Trinidad and
Tobago mainly exports Goods particularly, oil but the tourism industry is
one that thrives in the country.14 The Caribbean has made tremendous
progress in the post-independence period, with numerous countries like
the aforementioned earning middle income and high-income status based
on growth per capita income. Nonetheless, the region is riddled with
several developmental challenges which negatively impact growth and
productivity. In light of these challenges, the region has been tasked to
rethink and restructure their approach to development. Therefore, struc-
tural changes in terms of identifying and investing in priority economic
industries especially when faced with crisis have been the balancing act
carried out by Caribbean states. For instance, Jamaica’s focus on the
tourism industry occurred due to the downturn of the bauxite and
aluminum industry in the 1970s despite it being the heart of the Jamaican
economy decades prior.
The social context of the Caribbean influences the perception of new
technologies. A major vehicle for this influence is the formal education
system. Before independence, most schooling was provided by churches;
today, the majority of schools are provided by the government.15

14 Economic Commission for Latin America and the Caribbean (ECLAC). 2012. Devel-
opment paths in the Caribbean. Retrieved from https://www.cepal.org/en/publications/
38253-development-paths-caribbean.
15 Whyte (1983).
 1 INTRODUCTION 9

Driven by a mandate of universal literacy, tuition became free and school

attendance in the Bahamas, Jamaica and Trinidad and Tobago was made
compulsory for all children at various educational levels.
As for higher education, courses are offered by numerous tertiary insti-
tutions, namely The University of the West Indies which has campuses
located in The Bahamas, Jamaica, and Trinidad and Tobago.
Interestingly, even some American universities have recently begun
offering courses locally in Jamaica.
Courses on tourism have been available at the University of the West
Indies since the 1970s. Initially, students would enter their first year at
one of UWI’s three campuses (Mona, St. Augustine and Cave Hill) and
complete their final two years of study in The Bahamas. Since 2006,
however, the Mona campus initiated a full three-year course, allowing
Jamaican students who wish to study tourism to do so in their own
country.
Each of the aforementioned tertiary institutions has contributed, to
some degree, to tourism and hospitality training of the country’s work-
force. In Jamaica, this effort saw significant growth when the College
of Arts, Science and Technology became the University of Technology
(UT). Unlike the courses offered on other campuses, those offered by UT
have a more scientific focus, with the additional aim of imparting tech-
nical skills to its students. It appears, however, that the “trickle-down” of
these skills to the rest of Jamaican society has been slow, and this is having
a direct negative impact on business in the island; the same can be said
for other Caribbean states.
Travel agencies tend to use technology that has been adopted by the
public at large. This makes the technological context of the country
important when it comes to understanding why travel agencies operate
the way they do. Internet penetration within The Bahamas, Jamaica, and
Trinidad and Tobago are 89,16 95, and 160%17 respectively.18
As mobile and cell phones increased in popularity, the demand for land-
lines dropped precipitously. The number of landlines supplied dropped

16 https://www.helgilibrary.com/indicators/mobile-phone-penetration-as-of-popula
tion/bahamas/#:~:text=Mobile%20phone%20penetration%20as%20a,than%20in%20the%
20previous%20year.
17 https://oxfordbusinessgroup.com/overview/three-company-liberalisation-has-bro
ught-host-benefits-consumers-along-stronger-0.
18 https://www.internetworldstats.com/carib.htm.
10 A. SPENCER

from over half a million to approximately three hundred thousand as

of 2006 in Jamaica. The introduction of internet connectivity to the
Caribbean, connecting States like the Bahamas, Jamaica, and Trinidad and
Tobago to the rest of the world opened up a whole new set of possibilities:
e-commerce.
As developing nations, the Bahamas, Jamaica, and Trinidad and
Tobago has a lot to gain by participating in the global economy. America
is our largest trading partner, and we are competing with the world. It is
vital that we implement the infrastructure that will allow us to engage with
those consumers on the same level as other nations around the world.
Given the limited size and scope of these States, including its human
capital, we have to develop quickly. Otherwise, we risk eventually facing
record deficits. While tourism, agriculture, mining or energy currently
provide a substantial portion of the revenue for these States, all of those
local industries, by US standards, suffer from deficient technology.
The Bahamas, Jamaica, and Trinidad and Tobago have never been a
major tourist-generating country, and most of the travel associated with
the islands is inbound. Specifically, tourism began in Jamaica in the 1890s
when the United Fruit Company had been experiencing a spate of excess
capacity in their ships. Seeing an opportunity, they began offering cruises
to Jamaica. Tourist hotels on the island soon followed, but it was not until
after the Second World War that tourism in Jamaica began to flourish. The
number of hotels tripled between 1945 and 1970, as investments at that
time were benefiting from accelerated depreciation allowances.
Being geographical neighbors, most of the Bahamas, Jamaica, and
Trinidad and Tobago’s inbound travelers are from the United States.
Likewise, most of their outbound travel is to the United States. This is
reflected in the sizable diaspora in that country. As a tourist destination,
though, these States receive far more tourists than it generates.
While it is commonly understood that Bahamians, Jamaicans, Trinida-
dians and Tobagonians travel to visit friends and family overseas, data on
them traveling to other countries for vacation is practically nonexistent.
This is probably due to the limited economic means of the average house-
hold. Despite the lack of data for outbound vacationers, the number of
Caribbean citizens living in other countries would indicate that there is a
demand for outbound travel for those who wish to visit family and friends
overseas.
For instance, the Jamaica diaspora is huge! According to some esti-
mates, there are as many people of Jamaican descent living outside of the
 1 INTRODUCTION 11

island as within it. The largest concentrations of the diaspora are located
in three countries:

• The United States

• Canada
• The United Kingdom.

As of 2008, there are roughly 637,000 second-generation Jamaican immi-

grants (those born in foreign countries) in the United States; 123,500
in Canada; and 150,000 in the United Kingdom, according to each
country’s statistical bureau.
Outbound travel in Jamaica and other Caribbean States is usually
handled by travel agencies with physical locations; agencies that have been
facing significant challenges over the past two decades. In 2000, American
Airlines, British Airways, and the regional-carrier Air Jamaica cut commis-
sions for regional travel agencies from 9 to 6%. According to the Jamaica
Gleaner, American Airlines implemented the cuts first, then travel agencies
responded by boycotting the sale of American Airlines tickets.
This action proved futile, however, as American Airlines (which
accounted for 70% of the air traffic to the region) opted to offer
direct bookings. The agencies’ position was further weakened when, two
months later, British Airways and Air Jamaica followed suit. In 2009,
further cuts followed, taking commissions from 6 to 3%. This, and other
changes in airline reservation practices, has led to the closure of numerous
travel agencies and a proliferation in unregistered agencies. In Jamaica the
Minister of Tourism stated, local unregistered agencies have no insurance
nor protection for their clients. Some have even faced the consequences
for selling travel packages that did not materialize.19
To provide a deterrent against the practice, the government passed
legislation to increase the fine for operating an unregistered travel agency
to a maximum of JMD$1,000,000.
The strategy being used up to this point, offering a limited set of
services to outbound travelers, is failing. This research posits that, in
addition to a reexamination of the market, current business practices and
processes must also be reexamined in order to generate a more adaptable
business model, especially with regard to technology.

19 Jamaica Gleaner (2011).

12 A. SPENCER

Methodology
The aim of this research is to determine what drives (or hinders) the adop-
tion of internet technologies for sales and marketing purposes in small,
owner-managed travel firms in the Caribbean. To that end, we have the
following objectives:

1. To examine those factors and drivers that determine the different

levels of technology adoption in travel agencies.
2. To explore the relationship between leadership and technology
adoption in owner-managed small firms.
3. To look at the influence of internal factors such as strategy and
resources on technology adoption in owner-managed small firms.
4. To investigate issues such as the digital divide and culture to see how
they affect technology adoption in owner-managed small firms.
5. To determine those characteristics of leaders and firms that lead to
the various levels of technology adoption develop a useful model of
technology adoption for owner-managed small travel firms.

The debate so far has existed mainly between positivism and interpre-
tivism, and each school of thought has greatly influenced how research
has been conducted. However, to achieve the aims of this work, Critical
Social Science provides greater grounding.
Embedded within Critical Social Science is the idea that, by providing
critique, objective truths may be uncovered. Truths that can help people
and encourage them to take action.20 Critical Social Science aims to
supply individuals and societies with the tools to enact positive change.
More importantly, it allows for the uncovering of underlying structures
and systems. This “uncovering” provides greater context for under-
standing societies and economies, allowing people to both see and alter
deeper structures. Fundamentally, the aim of this research is to dispel
myths and provide actionable information that will empower people to
change society for the better.
To do this, we must explore the Caribbean context in order to deter-
mine the conditions that local travel agencies are facing. To adopt a
“one-size-fits-all” approach, one would have to assume that the drivers of

20 Neuman (2006).
 1 INTRODUCTION 13

technology acceptance and the diffusion of innovation are universal. This

research supports the idea that firms should never become complacent
and should explore all possibilities while keeping all observable threats
and opportunities under consideration.
This research also aims to explore the opinions and feelings of stake-
holders in order to gain further insight. It proposes to explore the issues
through the qualitative inquiry of a small sample in order to extract more
universal conclusions. This research is rooted in Critical Science Theory,
but more specifically, it subscribes to the concept of Bounded Autonomy,
which argues that while there is some degree of subjectivity in human
actions, those actions are bound within identifiable limits. In other words,
while there are limits to what can be done, people are free to make what-
ever combination and/or permutations of choices they wish within those
limits.
This approach blends determinism (Positivism) and voluntarism (Inter-
pretivism) to show how social/economic structures and human agency
interact. Previous research on technology adoption mostly utilized deter-
minism/positivism.21 The blended approach in this work assumes that
people will only make choices based on what they think is possible within
identifiable limits. These limits may be cultural or material. Cultural
constraints refer to values, beliefs, and norms, while material constraints
may be a matter of limited resources. With this in mind, the research
attempts to explore the reality of Jamaican travel agencies and how they
relate to other realities.
The decision to focus this study on travel firms was as a result of:

1. the significant decline in the number of firms and

2. the lack of research into the Caribbean travel industry.

The lessons learned here may help to understand other similar indus-
tries and Caribbean territories. The primary commonalities being small,
owner-managed firms in relationship-oriented, developing economies.
This research is being conducted on a qualitative basis, with an induc-
tive approach; it is more concerned with the meanings, definitions and
concepts at play than the statistics and measures. It also means that we will

21 Davis (1989), Bagozzi (2007), Fuchs et al. (2010).

14 A. SPENCER

be using a small sample size to derive truth that is more generally appli-
cable. Furthermore, given that the core data of our research is more of a
textual nature than a numerical one, we will be using the Template Anal-
ysis techniques. Template Analysis derives common themes and narratives
from the text data collected. This can be text produced or used in the
context of the evaluation regardless of the evaluation activity, i.e., data
that was not generated by the evaluation.22
Neuman (2006) argues that qualitative researchers should develop
rudimentary working ideas and continually refine them throughout the
data collection and analysis process, instead of taking abstract ideas and
turning them into full theoretical definitions when studies are still in their
early stages. As data is collected and analyzed new concepts are developed,
formulates for major constructs are defined and the relationships among
them are considered, further developing the general theory. The initia-
tion and operation of this process comes before the conceptualization of
the relevant theories, but conceptualization occurs organically during the
execution of the research.
The execution of the research also involves describing how working
ideas are developed during the observation and collection of data. This
makes it more of an “after the fact” description than a pre-planned tech-
nique. This also illustrates how data and preconceived notions about what
that data means can become constructs.
Reliability and validity are typical notions within positivism. While reli-
ability is concerned with the extent to which results are consistent over
time, validity is concerned with the extent to which a study actually
measures what was intended.23 While these two issues may never be fully
resolved in this type of (qualitative) research, it is incumbent upon us to
demonstrate that the research is still credible and trustworthy. In fact,
according to Patton (2002), validity determines reliability in qualitative
research.
The research design, while predominantly qualitative, also incorporated
quantitative data that was analyzed in tandem with the qualitative data.
This made the analysis more robust and provided a foundation for deeper
qualitative inquiry. The interviews were semi-structured, and the ques-
tions were guided by both the objectives and a rudimentary conceptual

22 Crabtree and Miller (1999).

23 Golafshani (2003).
 1 INTRODUCTION 15

framework. While this did provide a deductive element to the study, the
dominant inductive approach was validated through a detailed template
analysis which identified common themes across cases. The results were
universal and transferable conclusions that were applicable across contexts
that shared the aforementioned commonalities:

• small, owner-managed travel firms

• located in similar developing countries.

It has been argued that adopting a qualitative approach reduces the level
of reliability and validity of a study. When studying concepts such as tech-
nology adoption, leadership, culture, the digital divide, resources, and
strategy, the predominant methods of study have been quantitative and
reductionist.
An important observation regarding the two major concepts being
researched (technology adoption and leadership) is that they both suffer
from similar methodological constraints, i.e., major studies on technology
adoption24 and leadership25 relied heavily on survey-based, quantitative
approaches. These studies have been important in identifying key vari-
ables and enabling further exploration, but it may be argued that that
methodology has been exhausted as a resource for new information.
Consequently, a different approach may prove to be more fruitful in
generating useful insights.

The Research Process

The research required a pilot study and two phases of data collection.
The pilot study confirmed the suitability of questionnaires and other tools
that were to be used in the first phase of data collection. It included
references to all the relevant constructs, including culture, the digital
divide, resources, etc. Ten respondents were interviewed to determine
the suitability of the questions.
The first phase of data collection was aimed at meeting the following
objectives:

24 Bagozzi (2007), Fuchs et al. (2010).

25 Choa (1998), Cole and Mehran (1998), Villalonga and Amit (2006), Welch (2003),
Ghobadian and O’Regan (2006).
16 A. SPENCER

• To explore the relationship between leadership and technology

adoption in owner-managed small firms.
• To look at the influence of internal factors such as strategy and
resources on technology adoption in owner-managed small firms.
• To investigate issues such as the digital divide and culture to see how
they affect technology adoption in owner-managed small firms.

The objectives listed above are three of the five objectives of this study,
and they are all output related. This means that these objectives are
expected to be met through the findings of the research itself as opposed
to input/process related objectives, which aim to influence the activity of
the data collection itself. In this study, four of the objectives are output
related, and one is input related:

• To examine those factors and drivers that determine the different

levels of technology adoption in travel agencies.

This input/process related objective emerged from the existing literature

and guided the design of the instrument used in the first phase of data
collection.
The instrument was constructed by using concepts that were tested
in various studies related to technology adoption. In order to effectively
probe and determine the appropriate questions to ask, concept maps were
employed. These concept maps, in addition to variables and constructs
used in previous research, were used as guides in the process of inquiry.
These emerged from the rudimentary conceptual framework we used
(Fig. 1.1). While conceptual frameworks typically do not emerge this early

Fig. 1.1 Full stack of steps in the innovation interdependence perspective

(Source Author’s Creation)
 1 INTRODUCTION 17

in qualitative research, a rudimentary framework does help the researcher

in streamlining ideas.26
As implied earlier, the interview instrument was a semi-structured one.
This approach was chosen because the concepts under scrutiny, while not
being new, are being applied in a different way. Despite the fact that
a qualitative methodology was dominant in the research, the first set
of questions on technology adoption used a closed-ended, quantitative
approach (“yes” or “no” answers) in order to gauge their current level of
engagement with technology.
The subsequent sections of the instrument were designed predomi-
nantly with open-ended questions, allowing for deeper explorations into
attitudinal concerns and processes within the firm. These subsequent
sections focused on organizational decision-making, leadership and a
multitude of macro factors.
According to organizational decision-making theorists such as Huber
and McDaniel (1986), organizational environments of the future are
likely to be characterized by greater complexity. They argue that the deci-
sions that are made within an organization, and how those decisions are
made, are central to it and should be recognized as such. That being the
case, it is important to get to the root of what drives those decisions, for
both the organization and the individuals within it.
Given the complexity mentioned above, to have the instrument be
guided by a single component model of attitude would be insufficient.
The decision was therefore made to use the multicomponent model.
The multicomponent model is an affective-cognitive model of attitude,
which postulates that behavior may be most accurately predicted through
a comprehensive understanding of the person, the situation and the inter-
action between person and situation. While this model has primarily been
used in psychology and human behavior research, it is being applied
to the organizational decision-making framework in this study. Notably,
this is the first time that this paradigm is being applied to the study of
technology adoption in business.
Rogers’ (1994) innovations adoption model provides us with tools
to assess leaders’ perceptions of innovations. Given that the leaders of
these firms are also the owners, the decision was made to focus on three
characteristics that directly affected an owner’s return on investment:

26 Vaughan (2008).
18 A. SPENCER

• relative advantage
• perceived risk
• image.

Issues of Compatibility and Complexity were later assessed based on

employee reactions to technologies.

• Relative Advantage was investigated using five statements that

initially addressed the importance of technology in business
processes and then moved on to more detailed questions around
making work more efficient.27
• Perceived Risk, with regard to technology, was addressed in three
open-ended questions. These questions inquired into the perceived
risk of investment from the perspective of time and money.28
• Image was measured using two questions: how competitors view the
firm and how the firm’s own customers view it.29
• Complexity was determined through questions regarding how easy
the technology was to use,30 how easy it was to learn to use, and
whether it actually made work easier or harder.
• Compatibility was assessed by how appropriate a technology was
for the tasks being carried out in the organization.31 Of note
is a particular question, developed by the researcher, that asked
how technologies were assessed before being introduced to the
organization.

The sample for this study was comprised of the top executives of 31
travel agencies in Jamaica. While total agencies amount to 43, only those
with owner-managers were included in this research. This was decided
because they would clearly have greater levels of autonomy within their
firms. Additionally, only those firms that were certified by the Interna-
tional Air Transport Association would be included and interviewed. The
other firms were either a franchise or not certified by the IATA.

27 Eason (1988).
28 Wernerfelt (1984), Mowery et al. (1998).
29 Grönroos (1993).
30 Davis (1989).
31 Peteraf (1993).
 1 INTRODUCTION 19

All 31 executives were interviewed as the only constraint was time. The
questions were guided by the conceptual framework, but interviewees
were allowed to speak freely. We started off the interview with closed-
ended questions and proceeded to ask several open-ended questions while
ensuring that all interviews were recorded and transcribed. The decision
was made to comb through the data in order to identify any themes. This
involved writing a case study based on all the data from the participating
firms and then conducting a cross-case and comparative analysis.
This led to an exhaustive review of the responses to interview ques-
tions, which eventually revealed several common themes. The themes
were shared among firms at similar adoption levels. Analysis of phase one
data yielded several categories of technology adoption:

• Computer Adopters used computers but only for back-office

accounting and front of house sales systems. Firms that use GDSs as
their ONLY online sales tools are also included here. Why? Because
the GDSs’ suppliers provided them for free.
• Internet Adopters are those firms that use the internet for commu-
nication purposes (email, instant messaging, Skype, etc.).
• Website Adopters refers to firms that have company websites that are
a part of their marketing and information strategy.
• E-Commerce Adopters use their websites for booking and payment
facilitation.
• Social Media Adopters are actively participating in social media as a
central part of their marketing, information and sales strategy.

Influenced by the work of Damanpour (1991), each firm was categorized

in one of two states within each level:

• Initiation
• Implementation.

While analysis of the data from phase one provided us with the “what”
(descriptions of the firms), it did not sufficiently tell us the “why.” Why
were each of the firms at their respective levels? Issues such as the digital
divide, culture, strategy, and resources did not adequately answer the
question as we anticipated they would, but leadership did appear to have
some significance.
20 A. SPENCER

Now, even though there appeared to be some degree of causation

when it came to leadership, it still could not explain each level of adoption
that was observed; hence, it was not sufficient to build out a model. It
was at this point that it was decided that a second phase of data collection
would be necessary. This second phase would be guided by constructs in
the most dominant leadership research at the time and aim to identify
variables in leadership that influenced the level of technology adoption in
firms.
The feelings of Owners were explored through in-depth, semi-
structured interviews, which allowed for the application of Template
Analysis.32 This analysis allowed us to find common themes in the various
narratives, enabling the inclusion of broader underlying structures in
the analysis. This analysis was reinforced by utilizing a cross-case anal-
ysis matrix (cross-case analysis is a research method that can mobilize
knowledge from individual case studies) and, since the interviews were
recorded, respondents’ own words could be used as an aid to more
accurate categorization.
The objective of Phase 2 was to develop a model of staged tech-
nology adoption for owner-managed small travel firms that identifies
the characteristics of leaders and firms at varying levels of technology
adoption.
To meet this new objective, the second instrument was designed
in a more focused manner but relied solely on open-ended questions.
Given that leadership type was the major influencing factor of tech-
nology adoption for the travel firms, the second instrument’s questions
were grounded in the transformational leadership literature. The purpose
being to strengthen and validate the leadership constructs and variables
identified in phase 1.
This instrument uses, as a guide, the four constructs identified by Bass
and Avolio (2003) in the Multifactor Leadership questionnaire. These
constructs are:

• Idealized influence
• Inspirational motivation
• Intellectual stimulation
• Individualised consideration.

32 Crabtree and Miller (1999).

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