Theories Of Information System Adoption

Published Date: 02 Nov 2017

Abstract

Low system acceptance by the end users is one of the major hurdles to the proliferation of e-government projects and it is noted that scholarly studies on citizen level income tax e-filing acceptance so far have addressed only Taiwan and USA. While these two are among the few countries in the field of e-government, India is a relatively new entrant in the field. This brings about the need for studies which address e-government adoption in other country contexts, particularly in countries where e-government is still in an evolving stage like India.

Most of the E-government adoption studies are skewed towards TAM or TPB, which is also the trend in Information System adoption literature which is subject to the criticisms of many researchers. This research empirically validates the e-file diffusion model proposed by Carter et al (2011) which extends the UTAUT model by adding trust factor, computer anxiety and optimism bias. The model studies the impact of personal, adoption and trust factors on e-file utilization. To test the model, a survey was administered to 50 participants. The data analysis was conducted using multiple linear regression. The findings indicate that all factors proposed in e-file diffusion model i.e. performance expectancy, effort expectancy, social influence, trust of government, trust of internet, computer anxiety and optimism bias all have a significant impact on intention to use an electronic tax filing system.

Introduction

Information technologies (IT), comprising of the Internet, e-mail, database, word processing applications, and so forth, have changed the way people work and live, the governments being no exceptions. IT initiatives in government services known as electronic government, or e-government, are changing the way the government works and interacts with citizens, businessmen, its employees, and other governments.

E-government is supposed to provide information, services, or products through electronic means, by and from government agencies, at any given moment and place, offering an extra value for all participating players (Gupta, Kumar, & Bhattacharya, 2004). IT has the potential to transform government structures and to improve the quality of government services. Technology provides two main opportunities for government: increased operational efficiency by reducing costs and increasing productivity, and the better quality of services provided by government agencies (Garcia & Pardo, 2005). Being the largest democracy and having one of the largest government set-ups in the world, India offers a vast potential for effective implementation of e-government (Gupta et al., 2004). The number of Internet users in India is constantly on the rise, with the focus shifting on providing more and more government services electronically.

The Indian central government and state governments have problems such as delay in processes, uncertainty, lack of transparency, corruption, and so on, in their various processes. In many successful implementations of e-government, the respective governments or government departments are able to get rid of such problems to a great extent.

In India, income tax e-filing was introduced in September, 2004, initially on a voluntary usage basis for all categories of income tax assessees. But from July, 2006, it was made mandatory for all corporate firms to e-file their income tax returns. Taking this process further, from assessment year 2007 to 2008, e-filing of income tax return was made mandatory for all companies and firms requiring statutory audit under section 44AB of Indian Income Tax Act.

Currently, 'Business Houses' with receipts of Rs 60 lakh and professionals with income of Rs 15 lakh are mandatorily required to e-file their return with digital signature. The Central Board of Direct Taxes (CBDT) has issued a notification making e-filing compulsory for assessment year 2012-13 onwards for an individual or a Hindu Undivided Family if his or its total income exceeds Rs.10 lakh and if he owns any foreign asset. For all other categories of income tax assessees, which includes salaried individuals, the use of income tax e-filing service continues to be voluntary.

The Tax Department made huge investment in terms of system development, safety and security of submitted information and sensitizing tax payers about the benefits of e-return filing using mass-media campaign. The campaign was targeted over the facility of anywhere/anytime filing, fast processing and automatic tax calculations with full safety and security of the information submitted.

According to Dalziel (2004), online government users use websites to search for information and download software applications to support online government services, but tax-based service interactions are more complex, as they involve both traditional search and download activities as well as file uploading services in support of tax filing and payments (Fu et al., 2006). Other problems may lies in reluctance of learning new system, time involvement, stability and reliability of system during e-filing process, confidentiality and privacy issues may also create challenges in acceptance of electronic return filing.

Although the concept of electronic tax payment originated in the U.S.A., other technology-enabled nations have also moved quickly to utilize the modality, including Australia, Canada, England, Germany, India, Singapore and Taiwan (Turner & Apelt, 2004).

However, the failure rate of e-government project implementation is up to 85% in developing countries, which is quite high (Heeks, 2003). E-government acceptance by the end users depends on various factors, which are needed to be studied at the pilot stage of implementation and addressed while the project in on rollout. Therefore, acceptance or intention to use e-government of end users should be studied carefully to identify the various factors affecting the acceptance decision of an individual. This will help in reviewing and fine tuning the projects to achieve higher acceptability.

Theories of Information System Adoption

Influential theories in information systems adoption studies have been commonly guided by the technology acceptance model (TAM) and/or theory of planned behavior (TPB). The precursor to both TAM and TPB is the theory of reasoned action – TRA (Fishbein and Ajzen, 1975). According to TRA, a person’s behavior is determined by his behavioral intention (BI), which in turn is determined by Attitude (ATT) and Subjective Norm (SN). ATT has been defined as a person’s positive or negative feelings (evaluative affect) about performing a target

behavior. SN refers to the person’s perception that people who are important to him think he should or should not perform the behavior in question. TAM is an adaptation of TRA, customized for modeling user acceptance of IS (Davis et al., 1989).

TPB is an extension of TRA and it takes into account behaviors over which people do not have complete control (Ajzen, 1991). After all, if an individual intends to perform a particular behavior, he can do so only if he can at his own discretion decides to perform or not perform that behavior. However, in practice one cannot perform most behaviors unless the opportunity and relevant facilitating resources (e.g. know-how, time, and money) are available to him. TPB adds an additional variable, i.e. perceived behavior control (PBC) to the TRA model. PBC taps on an individual’s perceptions of the presence or absence of requisite resources and opportunities required to perform a behavior. An attractive but relatively less used framework for technology adoption study is the diffusion of innovation/perceived characteristics of innovating – DOI/PCI (Moore and Benbasat, 1991).

Another related development is the unified theory of acceptance and use of technology – UTAUT (Venkatesh et al., 2003) which incorporates four core determinants of intention and usage, and up to four moderators of the main relationships. The UTAUT model is comprised of eight theoretical models: the theory of reasoned action (TRA), the technology acceptance model (TAM), the motivational model, the theory of planned behavior (TPB), a model combining the technology acceptance model and the theory of planned behavior, the model of PC utilization, the innovation diffusion theory, and the social cognitive theory. The goal of UTAUT is to understand one’s intention to use an information system (IS) and the actual usage of the system (Venkatesh et al., 2003). There are four primary components of the UTAUT model: performance expectancy, effort expectancy, social influence, and facilitating conditions.

The two income tax e-filing studies which do not employ TAM or TPB are: Schaupp and Carter (2008) and Carter and Be´langer (2005). Carter et al (2011) proposed a model which extends the UTAUT model by adding trust constructs and optimism bias into the model. This model is tested for its reliability and therefore it is employed in our present research.

Literature Review

While the e-Government concept has passed from the novelty stage to the process of development and implementation in nations around the world, research is needed more than ever to guide the process of design, delivery, adoption and evaluation of subsequently delivered governmental e-Services in the transformation process (Esteves & Rhoda, 2008; Mitra & Gupta, 2008; Wang & Liao, 2008).

Low system acceptance by the end users is one of the major hurdles to the proliferation of e-government projects. Few studies in the e-government acceptance highlights that usage level of an e-government would depend on a number of criteria viz. intention to use, attitude toward using, effort expectancy, performance expectancy, and so forth. In India there is probably a few evidence of such research, however there are some studies carried out in other countries.

Previous researches on e-filing adoption

Chang et al. (2005): 141 income tax e-filers completed a questionnaire designed to test a TAM model with the external variables information system quality, information quality, and perceived credibility; Perceived Usefulness and Perceived Ease Of Use explained 87 percent of variance in Attitude; Attitude, the only direct antecedent, explained 46 percent variance in Behavioral Intention (Taiwan).

Fu et al. (2004): 27,208 internet, 32,845 2D barcode, and 582 manual income tax filers completed a questionnaire designed to gauge tax filers’ satisfaction and future (next year) usage intention in respect of their respective tax filing methods; satisfaction level was highest amongst internet and least amongst manual filers; overall satisfaction (OS) with a particular filing method was strongly associated with Behavioral Intention(BI) for that method for next year. OS explained 38, 44, and 32 percent of the variance in BI for manual, 2D, and Internet taxpayers, respectively, (Taiwan).

Fu et al. (2006): 26,989 internet, 31,596 2D barcode, and 582 manual income tax filers completed a questionnaire designed to test a model combining constructs from TAM, decomposed TPB, COMP, and perceived risk; PU was the strongest determinant of BI in all the three taxpayer groups. The model explained 67, 64, and 67 percent of variance in BI, respectively, in case of manual, 2D barcode, and internet filing (Taiwan).

Hsu and Chiu (2004): 149 income tax e-filers completed a questionnaire designed to test a decomposed TPB research model wherein e-service satisfaction, internet self-efficacy, and perceived controllability were posited as the antecedents of e-service continuance intention. E-Service satisfaction and internet self-efficacy explained 75 percent of variance in intention to continue; antecedents of e-service satisfaction were interpersonal influence, Perceived Use, and perceived playfulness (Taiwan)

Hung et al. (2006): 1,099 respondents (1,008 adopters and 91 non-adopters of e-filing) completed a questionnaire designed to test a decomposed TPB model; ATT, SN, and PBC explained 72 percent of variance in BI (Taiwan)

Hwang (2000): An experimental study (30 taxpayers and 30 students, all familiar with computer use), followed by a postal survey (84, 58, and 36 complete responses from internet, 2D barcode, and manual income tax filers, respectively), to gauge user satisfaction with internet, 2D barcode, and manual income tax filing; 2D barcode gave highest level of satisfaction, followed by internet and manual method; satisfaction is also influenced by taxpayer filing experience (Taiwan)

Schaupp and Carter (2008): 260 MBA, upper level, and graduating students completed a survey designed to test a model which explains citizens’ intention to use e-filing. Trust of the e-filer, optimism bias, and perceived risk showed direct significant effect on intention (USA)

Sahu & Gupta (2007): An e-government acceptance model was developed and empirically tested using the 163 usable questionnaire responses from internal users of the Indian Central Excise. A priority of the variables was set by calculating the "total effect" of each variable on "intention to use e-government." Further, the "total effect" is compared with "ratio of acceptance" and clear recommendations for the Central Excise are generated for increasing the usage of e-government among it users.

Gupta et al. (2008): The aim of this study was to investigate the likely antecedents of young Indian professionals’ behavioral intention (BI) to use the income tax e-filing service. Prior to data collection, for which a self-administered survey was conducted, lecture-demonstrations were arranged to familiarize the potential respondents with the income tax e-filing service. The psychometric data were analyzed for reliability and construct validity of the measures, and thereafter a regression analysis was carried out. Regression results showed that antecedents of young Indian professionals’ BI to use the income tax e-filing service are: perceived ease-of-use, personal innovativeness in information technology, relative advantage , performance of e-filing service, and compatibility (India)

Carter et al (2011): This study proposes a model of e-file diffusion that integrates acceptance factors and personal factors to assess the impact of adoption, trust and optimism on e-file utilization. To test the model, a survey was administered to 260 participants. The data analysis was conducted using multiple linear regression. The findings indicate that performance expectancy, social influence, computer anxiety, optimism bias and trust of the government all have a significant impact on intention to use an electronic tax filing system.

Theoretical Background

Technology adoption is a vital area of research in the field of information systems (Davis, 1989; Rogers, 2003; Mallat & Tuunainen, 2008; Venkatesh et al., 2003). One of the most exhaustive adoptions models is the Unified Theory of Acceptance and Use of Technology (UTAUT). The UTAUT model is comprised of eight theoretical models: the theory of reasoned action (TRA), the technology acceptance model (TAM), the motivational model, the theory of planned behavior (TPB), a model combining the technology acceptance model and the theory of planned behavior, the model of PC utilization, the innovation diffusion theory, and the social cognitive theory. The goal of UTAUT is to understand one’s intention to use an information system (IS) and the actual usage of the system (Venkatesh et al., 2003).

There are four primary components of the UTAUT model: performance expectancy, effort expectancy, social influence, and facilitating conditions. Facilitating conditions, the fourth core determinant, refers to the existence of an organizational or technical infrastructure to support the system (Venkatesh et al., 2003). Since facilitating conditions is predicted to have a direct effect on actual usage, not intention to use, it is not included in the proposed model (Venkatesh et al., 2003). Performance expectancy refers to the extent to which individuals believe that using a system will improve their task performance (Venkatesh et al., 2003). Of the four core determinants, Venkatesh et al. (2003) found performance expectancy to be the strongest predictor of intention to use.

Behavioral intention to use is defined as an individual’s intention to use a specific Information System for some purpose either presently or sometime in the near future. There is a large body of previous research which suggests that many usage studies were anchored in behavioural intention to use and have reported a strong link between behavioral intention and actual usage (Chau et al., 2001). Previous studies have also noted that for survey research, analysis of intention to use is more appropriate than actual usage (Agarwal & Prasad, 1999).

Intention to use has been used as a dependent variable in a number of empirical studies and continues to be developed and tested by IS researchers in numerous contexts, including e-filing (Fu et al., 2006). Intention to use has heightened importance in an e-filing context where citizen use is voluntary and essential to desired outcomes.

Research Gap

E-government adoption studies are skewed towards TAM or TPB, which is also the trend in Information System adoption literature. In a comprehensive review on TAM, Lee et al. (2003) have presented leading IS researchers’ comments on TAM, i.e.:

researchers have focused too much on TAM, to the detriment of other theories;

TAM has detracted researchers’ attention from certain relevant problems which are not as easy to investigate rigorously; and

TAM has acted as an inhibitor to more advanced theories of IS use.

More recently, similar concerns on TAM have been expressed by Benbasat and Barki (2007). The two income tax e-filing studies which do not employ TAM or TPB are: Schaupp and Carter (2008) and Carter and Be´langer (2005).

It is also noted that scholarly studies on citizen level income tax e-filing acceptance so far have addressed only Taiwan and USA. While these two are among the few countries in the field of e-government, India is a relatively new entrant in the field. This brings about the need for studies which address e-government adoption in other country contexts, particularly in countries where e-government is still in an evolving stage like India.

Objectives of the study

To understand the awareness level among the tax payer’s about e-filing.

To determine the relationship between use intentions (dependent variable) and citizens’ perceptions of electronic filing systems (independent variables).

To test the e-filing adoption model proposed by Carter et al.

Research Model

Carter et al have proposed and empirically validated a research model that extends the UTAUT model by integrating trust, computer anxiety, and optimism bias in an emergent e-government service context. The present research puts to test the model proposed by Carter et al (2011). Research on the effects of trust and optimism bias on e-government adoption is still in its infancy. This model presents optimism bias as a salient predictor of e-government adoption.

According to the research model proposed by Carter et al., Intention to use an e-government system is influenced by three technology adoption factors—effort expectancy, performance expectancy and social influence; two trust factors- trust of the government and trust of the Internet; and two personal factors computer anxiety and optimism bias.

Hypotheses and Definition of Concepts

Behavioral intention to use is defined as an individual’s intention to use a specific Information System for some purpose either presently or sometime in the near future. There is a large body of previous research which suggests that many usage studies were anchored in behavioural intention to use and have reported a strong link between behavioral intention and actual usage. Previous studies have also noted that for survey research, analysis of intention to use is more appropriate than actual usage.

Performance Expectancy

Performance expectancy refers to the extent to which individuals believe that using a system will improve their task performance (Venkatesh et al., 2003). Of the four core determinants, Venkatesh et al. (2003) found performance expectancy to be the strongest predictor of intention to use. As it relates to e-filing, citizens who believe e-filing will help them file their taxes more efficiently will be more likely to use the e-file program. Hence, those who believe e-filing will enable to reach the same outcome (completed tax return) using less resources (time, energy, etc.) will be willing to submit their returns electronically (Carter et al., 2011).

H1. Performance Expectancy (PE) will have a positive effect on intention to e-File.

Effort Expectancy

Effort expectancy refers to one’s perception of the amount of cognitive energy required in order to interact with the system successful (Carter et al., 2011). In other words, effort expectancy refers to the level of difficulty associated with the use of a system (Venkatesh et al., 2003). Venkatesh et al. (2003) identify three constructs from the eight models which make up the concept of effort expectancy: perceived ease of use, complexity, and ease of use. Venkatesh et al. (2003) note that the similarity among these three variables has been documented in prior literature (Moore et al., 1991; Thompson et al., 1991; Venkatesh et al., 2003). Venkatesh et al. (2003) found that effort expectancy was significant in the initial stage of technology adoption. With regards to e-government, citizens must believe that electronic systems in the public sector are easy to use. A system that is too complex will deter possible users (Carter et al., 2011). It is important for e-government service providers to design systems that are intuitive, user friendly and well organized to minimize the cognitive effort required by users.

H2. Effort Expectancy (EE) will have a positive effect on intention to e-File.

Social Influence

Social influence relates to an individual’s perception that others who are important to him believe that he should engage in a certain behavior (Venkatesh et al., 2003). Social influence is comprised of subjective norms, social factors, and image. Venkatesh et al. (2003) note that social influence contains the explicit or implicit notion that people’s behaviour is influenced by the way in which they believe others will view them as a result of having used the technology. A potential e-government adopter will be more likely to use the service if those important him (e.g. supervisors, mentors, friends, family members etc.) have adopted the system. If one believes the use of an e-government system will enhance his social status, then he will be more likely to adopt such a system.

H3. Social Influence (SI) will have a positive effect on intention to e-File.

Trust of Government

Trust in the government agency providing the electronic service hinges upon the belief that it is capable of providing electronic services effectively and confidentially (Carter et al., 2011). In e-commerce research, this concept is frequently referred to as the firm’s reputation. Firms with a good reputation are believed to be less likely to endanger their "good-standing" in the community by behaving unethically (Chiles & McMackin, 1996; Ruyter et al., 2000; Smith & Barclay, 1997). The perceived reputation of the government by the citizens will certainly influence their intention to use an e-government system.

H4. Trust of the Government (TOG) will have a positive effect on intention to e-File.

Trust of Internet

Trust of the Internet (TOI) is also a salient predictor of e-service utilization (Carter & Belanger, 2005; Coetzee & Eloff, 2005; McKnight et al., 2002; Pavlou, 2003a; Warkentin &

Gefen, 2002; Welch et al., 2005). Trust of the Internet includes trust in the security mechanisms in place to support digital transactions (Shapiro, 1987). This type of trust is commonly referred to as institution-based trust. Institution-based trust refers to an individual’s perceptions of the institutional environment, including the features and regulations that make an environment feel safe (McKnight et al., 2002). The literature suggests that institution- based trust is one of the most important forms of trust in remote, pecuniary environments (Zucker, 1986). Hence, users will consider attributes of the e-service provider and characteristics of the Internet before using an electronic government service (Pavlou, 2003b).

H5. Trust of the Internet (TOI) will have a positive effect on intention to e-File.

Computer Anxiety

Previous research has shown that many information systems users experience anxiety when working with computer-based technology; this apprehension is especially prevalent during initial periods of interaction (Ganzel, 1998). E-filing being a relatively new concept in India will pave way for anxiety in the minds of the potential users of the system. Computer anxiety is defined as the uneasiness or fear that occurs when an individual is presented with the possibility of using an information system (Simonson et al., 1987). Social cognitive theory acknowledges that such emotional arousal is a negative mechanism that can hinder users’ performance (Hackbarth et al., 2003). Igbaria and Parasuraman (1989) found anxiety to be the strongest predictor of negative attitude toward usage. Regarding e-government adoption, citizens with higher levels of computer anxiety will be less likely to such initiatives.

H6. Computer Anxiety (CA) will have a negative effect on intention to e-File.

Optimism Bias

Contrary to computer anxiety, several technology users have an optimism bias. Optimism bias is "a systematic error in perception of an individual’s own standing relative to group averages, in which negative events are seen as less likely to occur to the individual than average compared with the group, and positive events as more likely to occur than average compared with the group (Weinstein, 1980b)." This concept suggests that although people identify situations as unsafe; they do not think they are as prone to a given threat as the average person. Many people believe that their knowledge and abilities reduces their vulnerability to risk. This phenomenon has been explored in several fields, including risk analysis (Sjoberg & Fromm, 2001), accident analysis (Dejoy, 1989), social psychology (Weinstein, 1980a), and behavioral medicine (Weinstein, 1980b).

With regards to information technology, (Sjoberg & Fromm, 2001) asked respondents to quantify the risk of certain perilous events (e.g. identity theft) happening to the general public and to them individually. When rating these events, participants scored the danger to the general public higher than their own (Sjoberg & Fromm, 2001). The authors found that although participants were aware of technology related risks, these hazards were mostly seen as issues of concern for other people. Regarding e-government adoption, citizens who believe they are more competent than the average Internet user may have an optimism bias that increases their willingness to participate in an e-government program.

H7. Optimism Bias (OB) will have a positive effect on intention to e-File.

Sampling Technique

Sample consisted of 50 respondents all working. The respondents were aged between 24-65 years. The sample was chosen using the Convenience Sampling Technique.

Methodology

A questionnaire was administered to a sample of 50 people to obtain data. Questionnaire consisted of 5 two option questions to check the level of awareness of e-filing among the people and 32 Questions measured on a 7–point Likert-type scale, ranging from 1 (strongly disagree) to 7 (strongly agree). To test Optimism Bias participants were asked to rate their ability to perform several task compared to the average Internet user’s ability. The survey questions were taken from Carter et al (2011).

Survey method was employed for collecting primary data. The survey questions were aimed at assessing their perceptions of the dependent and independent variables.

Data Analysis

The research model was tasted for its validity using multiple linear regression analysis. Regression analysis is used to relate a dependent variable to a set of independent variables. The goal of this study is to determine the relationship between use intentions (dependent variable) and citizens’ perceptions of electronic filing systems (independent variables). The model includes seven independent variables (effort expectancy, performance expectancy, social influence, trust of the government, trust of the Internet computer anxiety and optimism bias) and one dependent variable (intention to use).

Reliability Analysis

Items of the questionnaire were tested for reliability using Cronbach’s Alpha. The Cronbach’s Alpha showed .816 which is well above the required value for social science research which is .700.

Reliability Statistics

Cronbach's Alpha

N of Items

.816

32

Model Summaryb

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Change Statistics

R Square Change

F Change

df1

df2

Sig. F Change

1

.890a

.792

.758

.44508

.792

22.868

7

42

.000

a. Predictors: (Constant), OB, TOI, PE, EE, SI, CA, TOG

b. Dependent Variable: USE

Adjusted R Square is the measure of the success of the model. It shows how much variance of the dependent variable is captured. For the Social Sciences, .758 is good.

Table showing Co-efficient values for all independent variables

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

B

Std. Error

Beta

1

(Constant)

3.251

1.254

2.591

.013

PE

.762

.122

.727

6.250

.000

EE

.414

.120

.496

3.445

.001

SI

.719

.127

1.080

5.665

.000

TOG

1.185

.335

1.159

3.539

.001

TOI

.332

.116

.514

2.865

.006

CA

-.522

.099

-.800

-5.250

.000

OB

.892

.122

.948

7.303

.000

a. Dependent Variable: USE

The positive Beta values for independent variables show that there is a positive effect of these variables on Intention to Use and one variable having a negative Beta value being Computer Anxiety has a negative effect on Intention to Use. All the independent variables in the e-file diffusion model are significant (Sig.< .05).

Hypothesis Testing

Hypotheses

Co-efficient

t- values

Sig.

Supported

H1 (PE)

.727

6.250

.000

YES

H2 (EE)

.496

3.445

.001

YES

H3 (SI)

1.080

5.665

.000

YES

H4 (TOG)

1.159

3.539

.001

YES

H5 (TOI)

.514

2.865

.006

YES

H6 (CA)

-.800

-5.250

.000

YES

H7 (OB)

.948

7.303

.000

YES

Since the significance for all independent variables is < .05, all these variables have significant effect on Intention to Use e-filing. Performance Expectancy, Effort Expectancy, Social Influence, Trust of Government, Trust of Internet and Optimism Bias have a positive effect on Intention to Use (USE). And Computer Anxiety has a negative effect on Intention to Use.

Significant Results

Awareness about e-filing

All the respondents were aware of e-filing and 35 of them had completed an e-government transaction. 30 out of the 50 respondents had e-filed in the previous year.

The awareness about procedure for e-filing and their action (whether e-filed in Previous Year) was correlated and it was found that there is a positive relationship. This means that an individual is more likely to e-file if he is aware of the e-filing process. This calls for training individuals in this respect. Government should create more awareness among the tax payers about the e-filing process by conducting training programs at individual and organizational levels.

Adoption Factors

All the three adoption Factors i.e. Performance Expectancy, Effort Expectancy and Social Influence have a positive effect on Individual’s intention to use an e-file system. The results suggest that citizens who believe e-filing option will help them file their taxes more efficiently than the traditional alternative are more likely to adopt e-file systems. Hence, government should emphasise more on the benefits and advantages of using e-file system as compared to paper-based alternatives.

Personal Factors

Both personal factors—computer anxiety and optimism bias—significantly have an effect on intention to use. Hence, citizens will not make use of e-filing service if they are afraid of making mistakes that cannot be corrected. They will utilize this option only if they are able to enter information, download forms, and verify the authenticity of forms with ease. This suggests that e-government adoption requires a certain level of comfort with computer technology. Those who are comfortable with technology and confident in their ability to use these systems effectively are more likely to adopt an e-government system.

In India, computerization has been taking place in most sectors with the number of internet users being on the rise. But, there are a lot more who hesitate to utilize the e-governance services for the fear of losing data, making mistakes that cannot be corrected etc. Government should make e-filing more desirable by having options that are viable to the users.

Trust Factors

Trust of Government and Trust of Internet being the two trust factors are significant.

Citizens are more likely to use e-filing if they trust the Income Tax Department’s endorsements for e-filing. Trust in Government as a whole has considerable impact on user’s intention to e-file.

Trust of Internet is another important determinant of citizen’s intention to e-file. Citizens are more likely to e-file if they are content with the encryption and other technological advances on internet and feel that internet provides a safe environment for them to e-file.

In addition to confidence in their personal ability to use electronic services in the public sector, citizens must also possess confidence in the entity providing the service: the government. Indian government should initiate programs and campaigns in order to earn the confidence of its citizens.

Trust of Internet also has notable effect on intention to use e-filing. Hence, government should improve the legal and technological framework in order to protect the users adequately on the internet.

Limitations of the Study

This study suffers from three major limitations.

The first limitation is related to the sample size which is relatively small in comparison to similar other studies.

The second limitation is time constraint. The time period for the research was limited.

Another limitation is that the data for this study was collected through surveys, therefore allowing a potential of self-report bias from respondents.

Implications for Practice

This study has several implications for both the government and citizens. First, given the salience of trust, agencies should constantly implement policies and procedures to enhance the security of e-government transactions. Citizens must believe that the government possesses the knowledge, skills and ability to deliver reliable and secured Internet-based services.

When designing the software for e-return filing, the performance expectancy, effort expectancy, trust of government, trust of internet should be kept in mind. This move will motivate customers in developing beliefs around the e-return filing services and in turn will lead to customers accepting of e-return filing. The government needs to understand that the familiarity with new information system varies from person to person so they are required to develop mechanism to familiarize customers with the procedure of their services. Tax authorities can provide a manual reference or video presentations at the various points to explain ease of use.

In addition to government agencies, the implications of this study are also very relevant to citizens. This study illustrates that the effects of optimism bias do indeed exist with current and potential e-government adopters. Citizens need to be aware of this bias and take the appropriate measures to ensure that an e-government service provider is indeed trustworthy. Citizens should verify that the provider has implemented appropriate controls to ensure the privacy of their personal information before completing electronic transactions. The government could also implement incentive programs to increase e-service adoption. For instance, agencies could implement a rewards program or develop a marketing campaign to entice non-adopters.

Conclusion

The basic objective of this research study was to analyze various factors that affect the acceptance of new information system in light of the previous tested model proposed by Carter et al(2011). The study investigated the customer acceptance of e-return filing and its empirical generalization in developing economies like India. It validates the applicability of Extended UTAUT Model proposed by Carter et al (2011) in understanding the acceptance of e-return filing. The study reveals that acceptance of e-return filing can be improved by focusing on performance expectancy, effort expectancy, social influence, trust of government, trust of internet, computer anxiety and optimism bias.

Finally, in this information communication technology era, every government is required to develop a reliable, fast and customized channel for service delivery under various e-governance initiatives. The present study is a systematic attempt in this direction to explore customer acceptance of one such input in the form of e-return filing.