Abstract

Technological innovations change the intermediation relationships within securities trading. Thus, the
question arises which factors drive or hinder their adoption. This paper develops a model to evaluate
institutional investors' intentions to adopt the meta-technology we call non-delegated order handling.
It focuses on the usage of IT-driven trading systems which enable investors to control the choice of
trading venue, order slicing, and timing themselves instead of delegating the execution of stock
trading to an intermediary. Therefore the theory of task-technology-fit is integrated into the
technology acceptance model. Further, it was successfully tested on data from the largest European
institutional investors. The results outline that the perceived fit among the system‟s capabilities and
individual trading requirements is the main driver for adoption. Secondly, performance expectations
fuel the intention to use trading innovations. Thirdly, for the expected efforts only a weak effect could
be shown. Finally, factors like contractual barriers and competitive pressure which investors cannot
control do not substantially affect their adoption decision.

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