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Executive Summary
In the past decade, smartphones have experienced a tremendous
growth rate of 30% every year up until 2012. As a result smartphones are
concept of the virtual office is one the rise, which will dramatically
The research concludes that there is much scope for research in the field
practical application.
Acknowledgements
This dissertation could not have been completed without the help of
many others. The author would like to express his deepest appreciation
to all those that have supported in the completion of this dissertation.
Participants
List of Contents
INTRODUCTION ................................................................................... 1
I. PROLOGUE ............................................................................................ 2
II. THE RESEARCH ...................................................................................... 4
1.1 RESEARCH AIM ........................................................................................................... 4
1.2 RESEARCH OBJECTIVES................................................................................................ 4
III. OVERVIEW............................................................................................. 5
1.3 SECTION 1 – INTRODUCTION..........................................................................................5
1.4 SECTION 2 – LITERATURE REVIEW ..................................................................................5
1.5 SECTION 3 - METHODOLOGY .........................................................................................5
1.6 SECTION 4 – FINDINGS................................................................................................. 6
1.7 SECTION 5 – ANALYSIS & DISCUSSION ........................................................................... 6
1.8 SECTION 6 – CONCLUSION & RECOMMENDATIONS ......................................................... 6
RATIONALE .......................................................................................... 7
IV. RATIONALE FOR THE STUDY ................................................................. 8
V. SIGNIFICANCE OF THE STUDY ................................................................ 9
VI. LIMITATIONS OF THE STUDY ................................................................10
METHODOLOGY ................................................................................ 72
8 RESEARCH OVERVIEW .......................................................................... 73
8.1 RESEARCH TITLE ........................................................................................................ 74
8.2 RESEARCH AIM .......................................................................................................... 74
8.3 RESEARCH OBJECTIVES............................................................................................... 75
9 THE RESEARCH .................................................................................... 76
9.1 RESEARCH PHILOSOPHY ............................................................................................. 76
9.2 RESEARCH APPROACH ................................................................................................ 78
9.3 RESEARCH DESIGN ..................................................................................................... 79
9.4 RESEARCH STRATEGY .................................................................................................82
10 SECONDARY RESEARCH ...................................................................... 83
10.1 ADVANTAGE OF SECONDARY RESEARCH ....................................................................... 83
APPENDIX......................................................................................... 218
List of Figures
List of Tables
List of Appendices
Glossary
IS – Information System
OS – Operating System
Introduction
Virtual Office
I. Prologue
his smartphone to read the latest business news, which happens to have
the executive makes the required changes on his smartphone and sends
Upon arrival at the office, the team assembled in the meeting room is
management team.
A decade ago a story like this would have been considered a fairy-tale; a
Internet has played a key role in connecting people around the globe;
regardless of their location. Over 1.8 billion users around the world are
(Internet World Statistics, 2010). One of the limitations was the fact that
Smartphones play a key role in this dissertation. Research into the rise
environment.
III. Overview
The first section introduces the dissertation by setting the scene and
aims and objectives of the research and provides a rationale for the
research.
The second section is divided among five sub headings discussing the
how the workplace has changed over time and the move towards
smartphones.
methods that will be applied to collect relevant data and how the
The fifth section of the report analyses the findings in the light of the
Correlations are drawn to translate raw data in useful figures. Finally the
The sixth section summarises the report and draws conclusion based on
Rationale
Virtual Office
the past decade and will continue to grow at an expected rate of 30%
each year up until 2012 (Sacco, 2007). Roughly 172 million units were
(Gartner, 2010).
software that allows it to be used for a vast variety of purposes. The use
develop fairy tales for the future. Nevertheless, for now it is more
today.
social life, therefore examining how these devices are affecting the
three key generations in the workforce can uncover their positive and
negative effects.
society.
Literature Review
Virtual Office
1 Introduction
aims (Hart, 1998; Machi and McEvoy, 2008). A wide range of sources
The section will discuss the findings derived from extensive secondary
research. Each of the five chapters within this section correspond to key
Defining Smartphones
The Rise of Development in Smartphones
smartphones
Consumer Vs Business
Virtual Organisation
The Virtual Office Key Concepts
Literature Review
Knowledge Workers
Workplace Development
Smartphones in the Case Studies
Workplace
Opportunities and Treats
Generations
Multigenerational Key Differences
Workforce
Technology Acceptance
Telecom Redux, 2008). This year smartphone sales are expected to grow
by 36%; accounting for 27% of the total number of handset sales and
Maisto, 2009).
The definition of smartphones has been changing since the word was
first used. In 1958, when the Russian scientist Leonid Kupriyanovich first
law describes how technology doubles every two year, which in the case
(2010) state that the definition of smartphones has changed over time,
higher price tags. Jaylon (2010) furthermore notes that many of the new
iOS Apple
WebOS Palm
Symbian Nokia
Hardware
Additional
Software
of applications keyboard transfer
(also possible through
software support)
Able to conduct Large data
complex tasks capacity
Camera, GPS,
Advanced PIM & Gyroscope, Wi-Fi,
Calander options Bluetooth
In Figure 3 the author has outlined some of the key features a mobile
of a smartphone.
2.2 Origin
It was Apple computers who coined the term PDA in 1992, referring to a
lacking ‘real’ keyboards (Daniels, 1994a). The issue with the keyboards
2004).
Livingston (2004) stated that once PDA’s are connected to the internet
was the mobile phone. Its primary purpose was to enable its users to
recognised, this could also be linked to the fact that PDA’s were being
derived from the Latin word mōbilis, which is defined as movable, loose,
back in 1983 when they launched the DynaTAC 8000X, the world’s first
phone, the Modu weighs only 40 grams and has a height of 7.2 cm
and smartphones were heading for a collision course and that it would
2004) .
It was as early as 1992 when IBM released the allegedly first smartphone
(O’Shea, 2009).Since then there have been many successful and less
2.3 Development
Smartphones have been on the market for a while now; however initially
available and many people preferred the idea of having two separate
changed drastically, with each year sales exceeding the previous years
(Figure 4).
200
180
160
140
120
100
80
60
40
20
0
2003 2004 2005 2006 2007 2008 2009
55.4% this year and with sales expected to reach 247 million units by the
end of 2010; many companies in the sector are keen on taking active
Software Hardware
HTC
RIM
Microsoft
Palm
Samsung
Nokia
Apple
for mobile devices (Android, 2010). However, Apple made the most
affecting the shares of its competitors RIM and Palm (Arrington, 2007).
Although the iPhone was not revolutionary, as it did not introduce any
new features, it did combine existing features into a device that was
able to perform them very well (Klatell, 2007). The smartphone was
Hesseldahl, 2008; Riley, 2007). The app store allowed the iPhone to
devices.
Predecessors of the smartphone: the PDA and the mobile phone each
such as touch screen, camera/video support, dual SIM card, Wi-Fi and
integrated GPS (Shein, 2010). Two other limiting factors have been
2010).
when they were 3 years old (Rosen, 2004). Smartphones are being
social networking website Facebook; boasts with more than 500 million
users (Facebook, 2010), while its closest competitor; Twitter has more
development.
equipped with mobile phones, internet and laptops; people can choose
and be productive at any given time and anywhere in the world. These
knowledge workers. The management guru Peter Drucker first used the
This chapter will discuss the concept of a virtual office, addressing how
business.
becoming something you do, not someplace you go” (Helms and
(Helms and Raiszadeh, 2002, Shao et al, 1998). Figure 6 highlights the
1. 100% Virtual
2. Hollow
Firms
3. Virtual
Offices
inside the company and what is done outside the company is changed to
The final category is the virtual office. Traditionally the term virtual
office has referred to shared office space and/or business services (Allen,
that organisations that employ people that are enabled to work from a
In order to limit the extent of the research; the dissertation will use the
internet, GPS systems and other technologies would realise the vision of
working anywhere at any time. This vision has been realised by the birth
can operate remotely from each other and their managers (Cascio,
2000).
these may not be the only one that may define a virtual organisation.
Boundary the separation of those who are part of the virtual organisation
and those who are not, in the absence of any clearly visible
physical border lines. It defines who can share its activities
the act of sharing knowledge at a distant from each other and allowing
Employees
Office
Smartphone
s
Supplier Connected
s Centrally
through Laptops Employees
Stored data
Clients internet
Web Access
suppliers, clients and employees [on/off location] with all data being
Organisations are likely to use a blend of concepts that allow the firm to
Telecommuting
Tethering
Hot desking
Fully mobile
3.3.1 Telecommuting
al, 2009; Helms and Raiszadeh, 2002). Cross and Raizman (1987)
considered the first step towards the fully virtualised company. The
The benefits according to the research would derive from cost savings
than office workers as their ability to balance work and family life is
managerial impact is minimal and therefore there is less need for new
3.3.2 Tethering
location, but do have a fixed work location (Ferreira et al, 2009). The
work from a fixed location, i.e. home based office (Helms and
Raiszadeh, 2002).
listing the benefits and indicates that allowing employees to work from
commute
sickness levels
clients.
IT issues
and goals.
result were not assigned to a fixed office space (Ferreira et al, 2009;
conduct the work (Ferreira et al, 2009; Helms and Raiszadeh, 2002). This
to another employee.
difference between hoteling and hot desking is the fact that with
(1994b) explains the concept in the 90’s as an idea that was derived from
navy practises where a single bed was used by several marines to save
The benefits of using this system is that it frees up office space and may
reduce office size, space and cost (Helms and Raiszadeh, 2002).
The drawback of using this system is that managers must provide a level
of amenity so that the benefits to the workers are clear (Helms and
(Ferreira et al, 2009; Helms and Raiszadeh, 2002). They can work from
equipment allows the employee to be on the move and get closer to its
clients.
A drawback could be that the travel demands may increase and that
High
Fully mobile
Hot desking
Mobility
Tethering
Telecommuting
based countries.
Factory Workers
• Born in the 18th century
• Extension of the machine
• Reward in cash
Office workers
• Born in the 20th century
• Fixed responsibilities
• Reward in cash and incentives
Knowledge workers
• Born in the 21st century
• Outcome is more important than activities
• Reward in cash, incentives, trust and freedom
machine they were operating. They performed their work under strict
supervision and low levels of trust from the management. They were
the 20th century a new type of employee evolved, the office worker.
jobs within corporations (Cardinali, 1998), while at the same time much
of the physical work has moved to countries with cheap labour. This
competitive asset (Havens and Knapp, 1999). Knowledge lies within the
Historically, the workforce has been divided into two groups, namely:
the ‘blue collar’ workers (factory workers) and the ‘white collar’ workers
exchange for an hourly pay (Kelley, 1990). The work is done under strict
value in the eyes of the employers, a new category has been created,
and tools that are designed for blue-collar workers are not appropriate
exploring and tinkering, from which new solutions, new strategies and
(Glaser, 1976; Donelly, 2006). Along with Kelly (1990); Knell (2006) has
characteristics that reflect their own philosophy of work, career and life.
sovereign’, not bound by time and able to decide their own work
work continue to allow new methods (Donelly, 2006). It is not very likely
organisations.
becoming more demanding than their fellow workers are. This has
consider how they intend to connect their mobile employees with other
survey indicated that 340 small and large companies in Europe and US
Jackson (1999, p4.) stated that “it must be noted that existing ideas and
way what we think about new technologies …”. Jackson was correct in
been largely driven from the top downwards, with senior executives,
sales staff and field employees to be among the first to embrace the
allow businesses to employ new practises that result in cost savings and
2003). The are several reasons for companies to seek mobility, for it
autonomy.
As early as 1998, multinationals such Procter & Gamble, IBM, HP, AT&T
and Compaq had partially or fully eliminated their field sales and
corporate network at any time and almost anywhere. This allowed the
Under the name of ‘The New world of Work’, they have overhauled
productive and provide them with freedom to decide when and how
businesses.
4.2.1 Opportunities
gradually replacing tasks that other devices were required for (James,
reduce their costs of real estate and focus on flexible working schemes.
4.2.2 Threats
Smartphones have been very effective in fuelling this trend, as they are
able to decide when and how they work, while organisations can reduce
very tech savvy, this may not be the case for the oldest generation in the
smartphones.
5 Multigenerational Workforce
go was initially resisted by the baby boomers (Daniels, 1994b). The idea
of having an office and a desk offered them a sense of job security. The
workplace.
Each generation has a different perspective on social life, work life and
deal with four different generations at a single time, affecting the way
policies are drawn and what methods of conducting business are used.
This chapter will elaborate on the various generations that are currently
active in the workplace and will aim to critically analyse the differences
among them. Finally, the chapter will discuss how smartphones have
5.1 Generations
al, 1983; Smola and Sutton, 2002; Strauss and Howe, 1992). These
2000).
2009).
Society has created labels for each of the generation; however, these
labels are often inconsistent as the timespan used to define them are
5.1.1 Veterans
and Lane, 2001). They were born between 1922 and 1945 (Heffernan,
the end of 2010. Members of the Silent Generation are the parents of
2003). Born between 1946 and 1964 (Heffernan, 2006), they consider
Hicks, 1999; Yang and Jolly, 2008). Due to the size of this generation
and the times they have experienced, individuals of this cohort have had
5.1.3 Generation X
smaller families (Glass, 2007, Zemke et al, 2000). They are often
more commitment to their own careers than the organisations they are
being laid off during the mass corporate layoffs in the 1980’s which had
Individuals from this are led by their ‘survivor’ mentality and favour fun,
5.1.4 Generation Y
They are also known as Nexters, Echo Boomer and Millennials (Lamm
and Meeks, 2000). Members of this generation were born between 1981
mentality among the individuals of this cohort (Zemke et al, 2000). They
5.1.5 Generation Z
Individuals from Generation Z have yet to join the workforce. They are
2010a). This name has been given to them as they are seen as true
this research extensively, as they are currently too young for the
Lamm and Meeks, 2009; Macky et al, 2008; Smola and Sutton, 2002;
Phillips and Addicks, 2010; Pitt-Catsouphes and Smyer, 2007; Yang and
the same time (Frey, 2008; George, 2008; Hammill, 2005; Rosen, 2004).
(2007) stated, “Each group has its own distinct characteristics, values,
respect and inclusion for its multigenerational work force”. The key
Meaning of work
Leadership styles
Interactive styles
Communication
Figure developed by author utilising Glass (2008), Hammill (2005), Heffernan (2006), Lamm
and Meeks, (2009), Leitschuh (2007) Macky et al (2008); Smola and Sutton (2002)
beliefs and attitudes towards life and change (Rosen, 2004). The Silent
5.3.1 Smartphones
significantly. Baby Boomers tend to adopt new technology only after its
the products and the services they want to buy and use (Whittaker,
2010). However, this tech savvy generation does not need much
A recent survey [Figure 15] revealed that 69% of the baby boomers
8 10 14
23
33
39
46
42
38
23
15
9
mobile handsets, whereas among Gen Y this figure was 51% (Kavur,
considered too old while the other is too young to have a notable impact
behaviour and the subjective norms that exist toward the behaviour.
The model has four key elements: ‘Attitude’ relates to how the
states how the individual intends to act on the situation and ‘Behaviour’
Beliefs
Attitude
Evaluation
Intention Behaviour
Normative
beliefs Subjective
norms
Motivation to
comply
Systems. TAM specifies the elements that can allow improved attitudes
that TAM was the most influential and commonly employed theory for
Perceived
Usefulness
Attitude Behavioural Usage Behaviour
Perceived Ease Intention
of Use
Researchers felt that TRA and TAM were not suitable to predict user
influences that may alter the user acceptance (King et al, 1994; Taylor
flaws these models consist. Ogden (2003) claims that the models focus
on analytic truths rather synthetic ones and may create and change
the TAM (TRA) model. The most prominent and comprehensive model
Performance
Expectancy
Behavioural
Intention
Effort
Expectancy
Use
Social Behaviour
Influence
Facilitating
Conditions
Voluntariness
Gender Age Experience of Use
average from year 3 (Rosen, 2004). Recent survey indicated that mobile
66% of the baby boomers, whereas less than half of the Y generation
agrees with the same statement (Perez, 2009). It will also be interesting
2007). Elements that have a major impact on the decisions people make
and can assist in shaping how people behave (Gilbert et al, 1998).
different.
Due to these key features, the UTAUT model is the most appropriate to
TRA/TAM.
including TRA and TAM have led to several adapted versions of the
The literature review focused on four key areas within the research,
description for smartphones and that virtual offices can employ a range
each generation has a different attitude towards work and life; shaped
was born into it. Technology acceptance models were discussed in order
to understand the aspects that play a role in adoption and use. The
Methodology
Virtual Office
8 Research Overview
This chapter will examine the reasoning behind the selection of the
from them (Ghauri and Gronhaug, 2005). Method refers to the process
gathered and analysed (Ghauri and Gronhaug, 2005). The chapter will
furthermore discuss how the undertaken research will meet the aims
The chapter is comprised of five sections. The first section addresses the
the ethical concerns that were taken into account while conducting
research.
from anywhere and anytime. Smartphones play the role of enabling this
workforce.
environment.
adoption.
9 The research
There are two main types of research philosophies [Figure 19], with each
strategy.
Philosophy Description
Epistemology Concerns what is accepted as knowledge in a field
Ontology Concerned with the nature of reality
which in reality may or may not exist (Flowers, 2009). Social science
studies dealing with culture, power and control are examples in which
the view of the author may exist in reality or is only experienced by the
Research has two broad methods of reasoning which are known as the
et al, 2009).
Approach Description
Deductive The logical process of deriving a conclusion from a known premise or
something known as true
Inductive The systematic process of establishing a general proposition on the
basis of observation or particular facts
The inductive and deductive approaches are not exclusive (Ghauri and
Gronhaug, 2005; Gray, 2008), however the author found the deductive
discussion).
The research design is the general strategy applied to answer how the
The research design states the structure of the research problem and
Exploratory Seek new insights in the smartphone industry and identify its impact on
Research work place environments
Descriptive Is to portray accurate profile of smartphones, the new work place and
Research differences between generations of people
useful when the nature of the problem is not clear of the field of study is
novel (Cooper and Schindler, 2003; Gray, 2009; Saunders et al, 2009).
existing research provides and what elements the author could research
events and situations (Gray, 2009; Robson, 2002). When applying this
allowed the study of the areas involved. The approach resulted in the
The strength of each type of research was used in different stages of the
Explanatory
Exploratory
Descriptive
Proposal Dissertation
strategy provided more control over the research process and offered
the possibility to collect data that could be representative for the whole
10 Secondary Research
2009).
savings in time and money (Ghauri and Gronhaug, 2005). The existing
research was sufficiently extensive and removed the need for the author
data was collected for a different purpose than the one described in this
study; therefore, the data in some cases did not fit the research problem
data was the accuracy of the data (Ghauri and Gronhaug, 2005). During
the research, the author aimed to collect data from credible sources to
The author was advised by the supervisor to ensure that the secondary
(Churchill, 1999; Ghauri and Gronhaug, 2005; Green, 2000; Stewart and
The use of sources varied depending on the area that was being
reviewed. In the case that the information was not available through
journals and other sources had to be used; the author often performed a
11 Primary Research
Primary data was useful when secondary data was unable to answer the
Mechanical
Observations
Human
Mail
Primary Data Experiment
Interviews Phone/mail
Communication
s Surveys Personal
There are several methods to collect primary data [Figure 24], which
suitable method to collect primary data for this research. The following
paragraphs will provide a rationale for the selected method and explain
The main advantage of collecting primary data was that the information
first issue is that the process can be time consuming and can cost a lot
these issues was taken into consideration by the author when primary
chapters.
main difference between them is not the quality of the method but the
where the data are in the form of numbers, whereas qualitative research
is empirical research where the data are not in the form of numbers.
research is however more valuable when studying the factors that affect
[Figure 25]
There have been several dialogues within social sciences regarding the
research (Blaxter et al, 2006). Some researchers find the two methods
(Creswell, 2009; Blaxter et al, 2006; Ghauri and Gronhaug, 2005). The
11.4.
The actual primary research method was different to what had been
workplace.
Qualitative Method
Interviews
Questionnaire
Quantitative Method
conducted and the research aim was altered to research how different
The UTUAT model has been used to examine smartphones and much of
the previous research in this area has been conducted using quantitative
Furthermore, many other studies that have been conducted in the field
2002; Wang et al, 2006; Wu and Wang, 2005). Studies that have
(Dries et al, 2008; Lamm and Meeks, 2009; Smola and Sutton, 2002;
Yang and Jolly, 2008). A wide range of significant research has been
12 Survey
apply.
Delivery and
Collection
questionnaires
Internet mediated
questionnaires
Self-administered
Postal questionnaires
Questionnaire
Telephone
questionnaire
Interviewer
administered
Structured interview
were the low cost, the global reach and the automated data collection.
analysis package (Fink, 2009). It provided the author with the ability to
create skip patterns that were not visible to the respondent (Fink, 2009).
billion people around the world have access to the internet according to
the latest figures (Internet World Stats, 2010). The dissemination would
500 million users (Facebook, 2010) and the RGU alumnus, which
may not look the same in different web browsers and different monitor
the answers (Fowler, 2009). The author limited this issue by extensively
be achieved.
The author used the service provided by Survey Gizmo to conduct the
questionnaire, collect and monitor results and export the collected data.
Free Free
The alternative available to the author was Survey Monkey, which has a
limited account available for use without any cost incurring. However for
a package with more options the author would have to pay £20,- per
month and would still be receiving less options than Survey Gizmo. A
comparison was made between the two free packages made available
by the two companies [Figure 28]. The author also found it very
convincing that Microsoft and HP, the leading providers of software and
hardware, were using Survey Gizmo. Hence, the most sensible choice
12.2 Design
logics were built into the questionnaire to collect relevant data from
each respondent.
The first logic was related to the generation a respondent was born into.
This was done because this generation was considered to be too young
possessed a smartphone.
‘(self/un) employed/ retired’. The first group was relayed to a page were
found in Appendix 1.
Demographics
End of Survey
12.2.1 Demographics
information. Five questions were asked in the section that addressed the
gender, age, region of origin, education and the position. Gender and
industries.
12.2.3 Smartphones
from the UTAUT model. The questions were presented using a five point
were adapted to meet the needs of the current research (Al-Qeisi, 2009;
Connon, 2007; Kim, 2008; Wang et al, 2006; Wu and Wang, 2005). This
Skinner, 1991; Bui, 2009; Burdon and Steane, 2004; Paltridge and
rigorous.
they had regarding the questionnaire. They were also offered to submit
available.
12.3 Pilot
requested four people to fill in the questionnaire, noting the time it took
other complications they may encounter. This was done after the
required.
Pretesting provided the author with useful feedback, which was then
integrated into the final survey. The appearance and the readability
feedback the following changes were made: a progress bar was added,
language and ‘use behaviour’ questions were brought to the front due to
After the pilot testing with respondents, the author used diagnostics
Finally, the author generated test data using the built in tool. The
exposed a flaw in the logic. After this test, the questionnaire was
The first method was using the author’s online social network and the
that resonates so effectively with readers that they share it with many
others quickly (Mullen and Daniels, 2008). To create a viral aspect to the
that a simple random sampling method was applied. The criterion for
sample respondents.
interface [Figure 32], which would otherwise not be possible with the
al, 1998). The attractive interface options meant that colour, different
Developed by author
Figure 32 – Extract from questionnaire
respondents (de Vaus, 2002). This was not possible with the
people that were invited, but had not responded. This provided the
web surveys indicated that using incentives was associated with similar
and lower response rates. They concluded that this may be related to
the research (Ghauri and Gronhaug, 2005). This would limit the
the communication with respondents, the aim was to avoid jargon and
for digital data analysis are SPSS and Stata. SPSS is promoted as the
and academic organisations (SPSS Inc., 2010). Stata does not make such
determined that, both suites were excessively complex for the purpose
of this research.
and discussion. The author will furthermore make use of Microsoft Excel
Percentages have been rounded to full figures; this measure was taken
13 Ethical Considerations
Ethics are moral principles and values that are bound to impact the way
the researcher conducts its activities (Ghauri and Gronhaug, 2005). The
which the aim is to establish and promote good ethical practise in the
aim of SPER and SERP is to avoid any ethical misconduct from taking
place.
The principle is that people are not required to participate in a survey (de
survey:
This informed the participants that they have the right to abandon the
Along with the text above, the participants were provided with contact
details of the author, which enabled them to seek contact with the
their voice (Creswell, 2009). Current research did not require personal
their voice’ and all data was collected anonymously. The survey was
following text:
Findings
Virtual Office
14 Overview
findings on the use of smartphones and the final chapter addresses the
UTAUT construct.
Unless stated otherwise, all figures in this section were developed by the
author.
15 Demographics
15.1 Gender
model. The questionnaire was filled in by 229 males (54%) and 196
60%
50%
40%
30%
20%
10%
0%
Male Female
15.2 Age
[Figure 35]. This will allow the research to identify generation gaps in the
60% 1.00%
50%
40%
30% 0.50%
20%
10%
0% 0.00%
Gen Y Gen X Boomers Gen Z Veterans
Figure 35 – Generations
while the largest group among the minority were Asians (n=55, 13%).
80%
Other 2%
60% South American 1%
North American 2%
40%
Middle Eastern 2%
20% African 5%
Asian 13%
0%
European 0% 5% 10% 15%
15.4 Education
50% 47%
Primary School 3%
40%
33%
30% College, No degree 5%
10%
College 8%
0%
UG PG 0% 5% 10%
Figure 37 – Education
15.5 Position
Retired 1%
Unemployed 4%
Student 25%
Figure 38 – Position
16 Segmentation
research may limit or extent the usability of the results. The primary
16.1 Generation Z
two responses from generation Z. This did not have a significant impact
only one follow up question: “Do you own a smartphone?” The recorded
result was one individual responded with ‘yes’, while the other
responded with ‘no’, Due to the size of the sample this information was
16.2 Students
with 10 respondents.
the highest frequency (n=23). Figure 40 displays the top four industries
16.3 Professionals
presented.
Education 8%
Healthcare / Medical 8%
IT / Telecommunications 10%
Other 14%
0% 5% 10% 15%
(n=12).
N/A - Unemployed/Retired/Homemaker 4%
Director 10%
Manager 26%
Professional 43%
levels average of income among respondents [Figure 43]. The mode was
respondents.
30% 27%
25%
20%
15% 16%
15%
10% 11%
10% 8%
6% 6%
5%
0%
N/A 1-4 5-9 10 - 19 20 - 99 100 - 499 500 - 9,999 10,000+
17 Smartphones
the respondents were presented with questions that would identify the
to purchase one.
80%
60%
40%
20%
0%
Yes No
60%
50%
40%
30%
20%
10%
0%
Yes No
100%
80%
80%
60%
36%
40%
20% 10% 8% 4%
0%
Extended Ready to try it More affordable Required for Other
features work
felt they did not require the extended features [Figure 48]. The second
Too complicated
Other
I am a late adopter of technology
Too expensive
I don't need extended features
18 UTAUT
smartphones between one and two years (33%, n=87), closely followed
by three to four years (30%, n=81) and less than one year (29%, n=77).
6 to 8 year 6%
3 to 5 years 30%
1 to 2 years 33%
Basic mobile phones are primarily designed to make calls and use text-
often used for checking e-mail (91%, n=243), browsing the web (85%,
n=226) and as calendar/organiser (80%, n=214) than they are used for
calls and instant messaging services (73%, n=195). The least popular
Word processing
Other
Gaming
Directions/maps
Calendar/ Organiser
Web surfing
Checking e-mail
use them at any given time. More than half of the respondents (58%,
n=156) used their smartphones during daily commutes [Figure 51]. Home
At work
During Travel
At home
matter.
difference.
Statement #1 #2 #3 #4 #5
Strongly Disagree 3% 18% 21% 9% 13%
Disagree 6% 50% 45% 20% 30%
Neutral 33% 20% 18% 40% 26%
Agree 40% 10% 11% 20% 23%
Strongly Agree 18% 2% 5% 11% 8%
the service. Fast network availability was not an issue among the
not proactively promoting the use of smartphones [Figure 52], only 13%
smartphones. Which means that although the use is not encourages, the
their family and friend helped them use smartphones. This could relate
to the fact that Gen X and Y together formed 76% of the respondents.
Statement #1 #2 #3 #4 #5
Strongly Disagree 22% 4% 3% 22% 29%
Disagree 39% 17% 12% 34% 39%
Neutral 17% 28% 26% 31% 18%
Agree 20% 47% 50% 10% 12%
Strongly Agree 2% 4% 9% 3% 2%
measuring the quality of interaction (79%) and the use of features (81%)
were noted when respondents were asked whether they found the
Statement #1 #2 #3 #4
Strongly Disagree 2% 3% 6% 3%
Disagree 9% 7% 14% 8%
Neutral 10% 10% 9% 9%
Agree 47% 47% 43% 50%
Strongly Agree 32% 33% 29% 31%
18.5 Experience
Figure 55 – Experience
essential tool in their daily life. Findings therefore advocate that people
Statement #1 #2 #3 #4 #5
Strongly Disagree 2% 4% 5% 3% 7%
Disagree 6% 15% 34% 11% 30%
Neutral 21% 19% 30% 25% 32%
Agree 41% 42% 23% 47% 27%
Strongly Agree 29% 19% 8% 15% 5%
affected the quality of their work output [Figure 56]. While nearly all of
Statement #1 #2 #3 #4
Strongly Disagree 2% 5% 3% 8%
Disagree 3% 7% 5% 8%
Neutral 3% 9% 9% 17%
Agree 55% 46% 43% 49%
Strongly Agree 37% 32% 41% 19%
Statement #1 #2 #3 #4
Strongly Disagree 4% 16% 31% 19%
Disagree 18% 48% 28% 39%
Neutral 13% 16% 9% 16%
Agree 48% 16% 19% 22%
Strongly Agree 18% 3% 13% 4%
smartphones. 41% indicated that they did not intend to use all the
functions, whereas 44% of the responds does have the intention to use
all functions.
Results furthermore showed that 85% does not intend to use their
work. Figures suggest that most individuals do not mind using their
no other option.
Statement #1 #2 #3 #4
Strongly Disagree 7% 29% 3% 24%
Disagree 34% 56% 10% 43%
Neutral 15% 8% 6% 14%
Agree 34% 6% 54% 15%
Strongly Agree 10% 1% 28% 4%
Virtual Office
19 Overview
In the former section, data was converted into information. This section
The section will discuss the adoption of smartphones among the three
20 Smartphones
80% 68%
64%
58%
60%
42%
36%
40% 32%
20%
0%
Boomers Gen X Gen Y
Yes No
student, which are known for their limited financial resources. Whereas
93% of the boomers were (self) employed, which was also the case for
[Figure 43]. The gap in spending power can justify the adoption rates.
Figure 60 – Occupation
market due to their high spending power and nearly half of the Boomers
90%
77%
80%
70% 64%
59%
60%
50% 41%
40% 36%
30% 23%
20%
10%
0%
Boomers Gen X Gen Y
Yes No
due to the high purchase cost [Figure 62], Gen X and Y found
although Gen Y is considered most tech savvy among the three, it was
that they had no use for the extended features, eliminating the key
it satisfies my needs for connectivity” and “(I am) not sure yet, because
30%
26%
25% 24% 24%
23% 23% 23%
22%
21%
20% 19%
18%
16%
15% 15% 15%
15%
10%
10%
5%
0%
Too Expensive Extended Too Complicated Late adopter of Other
features not Technology
required
On the other hand, the extended features motivate the majority that do
the extended features (71%) [Figure 63]. This generation was also the
like Gen X is the first to encounter the new policies. Although only 4% of
taken into account that most respondents of this cohort are students.
This number can increase significantly by the time Gen Y has completed
80%
71%
70%
58%
60%
50% 46%
39%
40%
30% 27%
21%
20% 15%
10% 7% 7%
4% 4%
0% 0% 0% 0%
0%
Affordable Extended Required for Ready to try it Other
features Work
in the last five years [Figure 49]. Adoption before that period was primary
50% 44%
40% 37% 36% 35%
30%
30% 25% 25% 24%
However, since 2005 significant changes took place [Table 8]. Early 2005,
market and sold nearly 1.4 million units in 2007 alone (Apple, 2007).
50% 44%
10% 6%
3% 5%
1% 1%
0%
Less than one 1 to 2 years 3 to 5 years 6 to 8 year More than 8 years
year
21%
Check e-mail 19%
19%
18%
Web surfing 18%
18%
18%
Calander/Organiser 18%
18%
19%
Voice & Instant messaging 17%
14%
14%
Navigation 14%
14%
3%
Gaming 6%
9%
2%
Word processing 5%
3%
5%
Other 3%
6%
Checking e-mail is the most popular activity among all generations. Not
allows users to share more types of data (pictures, videos, and links),
namely voice and messaging. This activity was ranked fourth and could
sophisticated.
smartphone purchase them not to call and text people, but more
13). This claim was disputed more recently by Tscheligi and Sefelin
(2006) which stated, “We do not argue that guiding systems for
pedestrians will not work and will not sell… However, a system from
which the majority of travellers, hikers, tourists, etc. can benefit still
seems far away”. Four years later, mobile navigation is widely adopted
Google [Google Maps], Microsoft [Bing Maps] and Nokia [Ovi Maps] are
offering free navigation tools (Bing, 2010; Google Mobile, 2010; Nokia,
2010).
(RingCentral, 2010).
available. Apart from the usage during daily commutes, the three
26%
Home 24%
24%
23%
Work 23%
19%
22%
Travel 21%
23%
10%
Daily commutes 15%
18%
16%
Away from office 15%
15%
4%
Computer is n/a 3%
5%
21 Social
This could relate to the fact that trendy people prefer the latest
2009). Especially Gen Y considers this the case; they are a trendy, tech
took a neutral stance on this aspect [Figure 68]. Majority of Gen X also
60% 54%
50% 44%
41%
40%
30%
30% 26% 27% 25%
most keen on buying hi-tech equipment. It could relate to the fact that
trendy Gen Y. Gen X is often described as the middle child that balances
his decision between his older and younger siblings (Stephey, 2008;
50% 47%
42%
38%
40%
29% 30%
30% 27%
23%
20% 21%
20%
8%
10% 6%
4% 4%
2%
0%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
The Boomers (78%) and Gen X (76%) consider the smartphone a more
useful tool than mobile phones and disregard it as being a hype [Figure
70]. In contrast, 21% of Gen Y agreed that smartphones are a hype and
that mobile phones are good enough, nearly twice as many as the
57%
60% 48%
38%
40% 30%
19% 19% 22%
16% 16%
20% 11%
5% 6% 5% 3% 5%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Response to: “Smartphones are a hype, mobile phones are good enough”
Moreover, it is Gen Y’s interactivity with its social network that is most
whereas a mobile phone does not offer this functionality. Twitter and
interaction with your social network, the intensity of usage of this kind
Response to: “Not having a smartphone will affect my interactivity with my social network”
occur externally; i.e. checking e-mail and surfing the web. Providers
among all generations indicated that their providers fully support the
higher than other parts of the world (Forrester Research, 2008; Lomas,
Response to: “My Network provider does not fully support the usage of smartphones”
have a neutral stance on this matter. This could relate to the limited
80%
57% 59%
60%
43%
40% 31%
21% 20%
20% 11% 12% 13% 9% 10%
5% 3% 5%
0%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Response to: “The operating costs of a smartphone do not prevent the use of it”
80%
60% 49% 47%
40%
20% 4% 4% 4% 4%
3% 0% 0% 0%
0%
(Self) Employed Unemployed Retired Student
and family are often first ones to be considered for help. Findings
whether their friend and family guide them in the use of smartphones
[Figure 75].
50% 46%
Response to: “My friends and family guide me in the use of smartphones”
assisted by family and friends. The explanation for the high number of
argument could be that people may not require the assistance in using
have been users of smartphones for 3 to 5 years [Figure 64] and therefore
individuals agreed that assistance was available from the supplier [Figure
76]. However, 28% of the Boomer disagreed, whereas the other two
generations did not feel as strongly about this matter. As the literature
within the analysis itself as the Boomer’s family and friends most often
60%
49% 51%
50% 44%
40%
29% 31%
30% 26%
18%
20% 15% 15%
10% 4% 5% 6% 5%
2% 1%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
essential tool in their daily lives, followed by 61% of Gen Y and 57% of
to be an essential tool in their daily lives. A major cause for this must be
the fact that users are using smartphones for a wide variety of purposes
60% 53%
50% 44%
40% 37%
30% 24%
18% 20% 20%
20% 16% 16%
13% 15% 13%
10% 5% 4%
2%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
However, Hoover (2008) for instance indicated that the iPhone is able to
the functions a supplier provides, they can install applications that serve
their need and wants more correctly. Nonetheless, 43% of the Boomers,
40% of Gen X and 47% of Gen Y indicated to have the intention to use all
60%
39% 39%
40% 33% 32% 34%
30%
16% 16%
20% 7% 10% 5%
11% 10% 13%
4%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Boomers Gen X Gen Y
Response to: “I intend to use all functions of my smartphone”
has been shown to slow learning and reduce efficiency (Jarmon, 2008), it
do not encourage too much multitasking, unlike Gen Y (26%) which did
not share the view to the same extend [Figure 79]. Highest frequency of
all three generations more than half of the respondents found that
60%
40%
36% 36%
40% 31%
27%
24% 23%
20% 20%
20% 11%
6% 3% 6% 6%
2%
0%
Strongly Disagree Neutral Agree Strongly Agree
Disagree Boomers Gen X Gen Y
Response to: “Smartphones encourage too much multitasking”
generation would like to see the benefits demonstrated [Figure 80]. Yet
knowing its benefits to them. The findings contradict Chen (2010) which
stated that Boomers only tend to adopt new technology after its
60%
49% 48%
50% 45%
40%
30%
21% 21% 21%
17% 16%
20% 14% 15% 12% 13%
7%
10% 3% 3%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Response to: “I want to see the benefits of a smartphone demonstrated before I purchase it”
Among Gen Y, with 20% of the individuals they least often indicated to
would like to see the benefits, of which 21% even strongly agreed to the
indicated that this tech savvy generation did not require much
(2010) was accurate in stating that Gen Y is more aware of the choices
they make and the product/services they want to buy and use.
serve a need or a want. More than one fifth of all generations strongly
60% 52%
48%
50%
37%
40%
30% 24% 26%
20%
17% 17%
20% 13% 13% 15%
7% 7%
10% 3% 4%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
22 Workplace
costs [chapter 4]. This trend was experienced by 55% of the Boomers
and 49% of Gen X, whereas only 14% of Gen Y was provided with a
smartphone [Figure 82]. The findings are not very surprising as Boomers
and Gen X form the largest group within the current workforce;
is mostly student and has yet to join the workforce in greater numbers.
45%
39%
40% 37% 37%
35%
30% 28%
26%
24% 23%
25%
20% 18%
16% 15%
15%
9% 10% 10%
10% 6%
4%
5%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
capitalism” (Florida, 1999: p. 68), yet they lag in adopting new practises.
2010).
45%
38% 39%
40%
35%
35% 32%
31%
30% 27%
25%
25%
20%
20%
16% 15%
15%
10%
10%
4% 4% 3%
5% 2%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Response to: “My company/university does not support the usage of smartphones”
Neutral replies were even more frequent when the generations where
45% 42%
40% 39%
40%
35%
30% 26%
25% 23% 23%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
may be keen on using smartphones, but are they perceived and used as
business tools.
more efficient and organised tool in their jobs, whereby the majority of
all generations had a neutral stance on this matter [Figure 85]. Findings
indicate that majority of people have either not yet discovered how to
Response to: “A smartphone provides me with a more efficient and organised tool in my job”
Smartphones however are not essential tools in order for one to work.
60%
35% 38% 32% 39%
40% 27% 31% 25%
16% 20%
15%
20% 10%
4% 4% 2% 3%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
Response to: “I have a smartphone because I cannot complete my work without it”
their work [Figure 86]; however, 55% of the Boomers and 49% of Gen X
indicated that they would be unable to access essential data if they did
smartphone.
60%
39% 37% 37%
40% 28% 26%
24% 23%
16% 15% 18%
20% 6% 9% 10% 10%
4%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
noticed. Even though Gen X and Gen Y are considered more tech savvy
business tool, this does no longer seem to be the case [Figure 89, Figure
90].
70%
59%
60% 55% 56%
50%
40%
31%
30% 27%
25%
20%
9% 9% 9%
10% 7% 6% 5%
2% 1%
0%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
was very clear on this matter, nearly everyone disagreed to using their
smartphones only at work and nearly everyone agreed that they intend
70%
61%
60%
53%
51%
50%
40%
33%
30%
30%
18%
20%
11% 10%
9%
10% 7%
5% 5% 5%
2% 2%
0%
Strongly Disagree Disagree Neutral Agree Strongly Agree
23 Summary
served as the foundation of the research and enabled the author to build
and Workplace. Although the latter is key to the aim of this research,
phenomena.
existent.
substantial increase was noted in the past five years. The usage of
was the most popular activity among each generation. However, there
were certain activities that attracted one generation more than the
device, whereas more than half of the Boomers had a neutral stance
effect to a lesser extent, they shared the experience. This was in line
essential tool in their daily lives, with similar intentions to use the
tool to be more efficient and organised in their jobs. They liked to use
within each generation and therefore the technology gap among the
Conclusion
Virtual Office
24 Conclusion
developments. The starting point for this research was to analyse what
had fuelled the soaring adoption of smartphones and how this was
affecting business.
Virtual office was a key concept within the research. The concept has
been under research for over a decade and its definition has changed on
this change.
you do, not someplace you go. New breed of employees are demanding
practises to meet the needs of this new employees. Some of the world’s
This led to research the three largest generations within the current
economic and social developments which have shaped their view on the
UTAUT.
that in general, individuals from the three generations that were using
towards the use of it. This was an interesting discovery, since the
was also noted that smartphone users were the tech savvy individuals
within each generation and therefore the technology gap among them
was insignificant.
mobile, the workplace of the future may not resemble todays work
been examined and discussed and have exposed a greater trend which
25 Final Thoughts
In the following section, areas for further research are identified and
Recommendations
Virtual Office
26 Recommendations
two sections, first section addresses areas for further research and
its findings may not apply to other cultures. Further research could
cultures.
identify the causes for adoption and examine the usage of smartphones.
26.2 Practical
possess a deep knowledge of wide range of areas, yet they wait for
for pushing the boundaries of innovation and not for adopting business
digitalise the library, making the library accessible to staff and students
at any time and any place and eliminating costs for sustaining library
Resources
Virtual Office
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Appendix
Virtual Office
Utilities 1%
Manufacturing 2%
Aerospace / Aviation / Automotive 2%
Retail 2%
Media / Printing / Publishing 3%
Leisure / Hotel / Entertainment / Recreation 3%
Government / Military 3%
Non-Profit 4%
IT / Telecommunications 4%
Other 5%
Construction / Engineering 6%
Research / Science 6%
Finance / Banking / Insurance / Legal 12%
Consulting / Professional Services 13%
Healthcare / Medical 13%
Marketing / Market Research / Public… 22%
September
2010
MSc Dissertation l Aberdeen Business School Page l 221