INTRODUCTION

Technological evolution in the last two decades has greatly impacted business service processes and practices across various sectors of the modern economy (Allameh et al., 2010).

DOI: 10.4018/978-1-4666-6268-1.ch024

financial activities, with the wide deployment and growing acceptability of electronic commerce and financial applications. Most business activities and competitive global practices are driven by electronic platforms, which have contributed in enabling cost efficient, faster and innovative development and delivery of products and services (Gopi et al., 2007). Electronic commerce, especially online stock trading service enjoys a top priority in financial and stock brokerage firms’ strategic goals (Kalakota & Whinston, 1996; Lee, Partridge & Ho, 2002).

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Online stock trading service was introduced in 1994, with initial apathy across the globe (Gatigon & Robertson, 1999). According to Internet World Stats (2006) Internet usage in North America appreciated by 110.3% between year 2000 and 2005. During the same period, Europe and Asia recorded a rise of 177.5% and 218.7% respectively. Yet online stock trading accounted for about 30% of the total stock trading transactions executed all over the world (Lee-K & Chung, 2000). Ac­cording to Allameh et al (2010) apathy of both individual investors and investment institutions to online stock trading is one of the major causes of inconsistency in the growth of online stock trading service. Nevertheless, very little is known about the specific factors that impact investors lack of interest in online stock trading service. Likewise, the implication of the adoption of online stock trading in investors’ trading performance has not yet been empirically validated. Thus, there is need for empirical investigation on the key factors that influence investors’ intention to adopt online stock trading, as well as the implication of the adoption on their trading activities performance.

The sustainability of online trading service is contingent on the attraction and retention of online trader service. Few researchers have examined the various antecedents of online stock trading service; however most have focused on only selected factors, while subsequent attempts have been independent of earlier ones. Therefore, the need to integrate such factors and empirically validate the ensuing model has become imperative. Indeed, online trad­ing service holds tremendous benefit for investors and investment institution, as a result this study will advance understanding on the theoretical model for explaining the adoption of online ap­plication in stock trading domain. In doing this, the present study will explicate the specific effect of these factors as well as their interaction effects on online stock trading adoption. For instance, the adoption of online stock trading has been found to be affected by interaction among factors like infra­structures, environmental, and behavioral attributes (Abroud et al., 2010). Specifically, this study aims to advance extant knowledge by developing a con­ceptual framework, which integrates the effects of the various antecedents for investors’ intention to adopt online stock trading platform.