Examining pre-adoption interest in online innovations: an exploratory study of e-service personalization in the public sector

In order to better understand why public organizations develop interest in online innovations, this paper develops a revised model of technological innovation with an emphasis on socio-technical factors associated with electronic service delivery. This model focuses on three primary dimensions of online innovation: perceived need, technical capacity, and risk mitigation. It is hypothesized that these three dimensions will have the greatest influence on the development of pre-adoption interest in a new online innovation. This model is then used to examine a single online innovation, personalization of online government information and services. Data from a survey of local governments is used to test the theory. A regression model was estimated from the survey data. Results suggest that perceived need, financial costs, and the ability to mitigate the risks associated with privacy issues each influence the level of interest in personalized online services. The results suggest that public organizations must find reliable means of determining external demand for online innovations, as well as reducing the risks associated with each specific type of online innovation prior to adoption.