OC1 0.927 Organizational Culture

(OC) OC2 0.913

0.932

BA1 0.927 Organizational

Barriers

Business Alignment (BA)

BA2 0.929

2.582***

Dependent Variables R²

Potential Value (PV) 0.447

Note: *p<0.1; **p<0.05; ***p<0.01

Table 3. Valuation Barriers’ Items, loadings and t-value Analysis

Conversion Barriers’ Items, Loadings and t-value Analysis (Post-usage data; n=113) Independent Variables Model 1 Model 2 Model 3 Model 4 Model 5 Potential Value (PV) 0.309*** 0.292*** 0.266*** 0.269*** 0.234***

Mobile Operations (MOP)

0.237***

Mobile Objects (MOB) 0.301***

Absorptive Capacity (AC)

0.477***

Actual Usage (AU) 0.568***

PV x MOP 0.114*

PV x MOB 0.195***

PV x AC 0.211***

PV x AU 0.112*

Realized Value (RV) R² 0.096 0.171 0.233 0.433 0.447

Differenced R² 0.075 0.137 0.337 0.351

f² 0.091 0.179 0.594 0.541

Pseudo F-value 10.227 20.182 67.167 61.110

Table 4. Conversion Barriers’ Items, loadings and t-value Analysis

Findings

1. High potential value can lead to relatively high realized value for a mobile service. As we argued before, the potential value of a mobile service is the expected value available to the investor if the implementation process is completely successful. However, the true value of the Orbi service that these exhibitors ultimately experienced was different from the expected value because of the barriers that arose after the mobile service had been implemented. In this case, we can see that the exhibitors who had high expectations and intentions surrounding their use of the Orbi service proactively eliminated the conversion barriers and achieved high levels of realized value at the exhibition.

2. The number of participants adopting Orbi services does not increase the value of mobile services. It is interesting to note that network effects do not apply to the Orbi service as introduced at this exhibition. The Orbi service is a brand-new service in Taiwan. Even though many exhibitors have expressed their interest in this service, almost none of them have used the service before. In addition, Orbi users do not have a channel through which to share their opinions about Orbi. Thus, most respondents doubt that this service can be widely accepted by the marketplace. Network externality thus becomes not a factor at this exhibition.

3. Competitive pressure does not have a significant effect on the potential value of mobile services. One possible reason may be that most of the exhibitors who participated in this exhibition are small and

medium-size exhibitors. Most of them focus on a niche market, and their product categories seldom overlap. The competitive pressure to adopt the Orbi service was thus relatively small. It is also very possible that exhibitors do not see the Orbi service as a competitive weapon.

4. Organization size has a negative effect on the potential value of a mobile service. One potential reason for this unexpected result might be that smaller companies are more active and flexible in adopting new services. Because they are under pressure to grow to enhance competitive advantage, the motivation to accept a new market and new technologies such as the Orbi service and thus to maintain an innovative work environment will be more intensive. Moreover, large companies often suffer from slowness, ponderousness, bureaucracy, and poorly motivated employees.

5. Organization age has a positive effect on the potential value of a mobile service. Some researchers argue that newer organizations have been born into an environment saturated with advanced communication and information technologies, and therefore they naturally rely on technologies to achieve competitive advantage (Porter 1981). Our data analysis shows the opposite result. One reason may be that older companies might be more experienced in adopting new technologies. The older companies generally possess complete, experienced investment teams ready to face the constantly changing market, and they tend to have employee training systems and rich resources, including appropriate mechanisms for adopting whatever new technologies the market demands.

6. Organizational culture does not have a significant effect on the potential value of a mobile service.

Past studies have found that organizational culture is a key factor in whether a firm decides to invest in an innovation or not. Our data analysis yields inconsistent results. It shows that organizational culture becomes insignificant while the service is perceived as an industrial trend and is pretty aligned with business goals.

7. Companies encounter resource barriers, knowledge barriers, and usage barrier while transforming potential value to realized value. Our result shows that, even if exhibitors expect high value from the Orbi service, they will not able to achieve that level of value without the support of business processes and technology infrastructure, the capability to learn how to gain value from the service, and actual usage of the service in enterprise.

Conclusion

Applying the limits-to-value framework proposed by Chircu and Kauffman (2000), we have aimed to study the related valuation barriers of mobile services in the exhibition industry. We validated the model using a two-step survey to investigate how the exhibitors evaluated the value of the new mobile service

“before” and “after” the implementation. The results show that the factors “industry characteristics of adopting new service innovation” and “business alignment” appear to be effective in determining the potential value of mobile services. They also verify that resource barriers, knowledge barriers, and usage barriers have significant influence on the value conversion process in which the potential value of mobile services transforms to realized value. There are several contributions of this study. First, the proposed framework assists practitioners and researchers in realizing the key value barriers of a mobile service. In addition, we use the framework in the context of real business practice (in the Taiwanese exhibition industry), considering an innovative mobile service, the Orbi service. This enables us to validate the

“limit-to-value” model in the context of mobile services.

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