Influence of E-Commerce Provider Environments on User Perceived Benefits and Adoption of E-Commerce

Many high-tech firms are moving towards making virtual interfaces as their primary points of consumer contact. In this environment, the provider physical appearance of facilities, employees, and equipments may play a role in enhancing electronic commerce (e-commerce) adoption. This study examines the influence of e-commerce provider physical environments on user perceived benefits and adoption of e-commerce, and the linkage between perceived e-commerce benefits and e-commerce adoption. Factor analysis and structural equation modeling are applied to survey data collected from Internet users in South Korea. The findings suggest that the e-commerce provider physical environment is a significant antecedent to user perceived benefits: usefulness and ease of use. However, there is no direct impact in enhancing e-commerce adoption. Managerial implications are discussed based on these results.