Theoretical Framework

Technology, Organization and Environment (TOE)

The technology, organization and environment (TOE) framework is described in Tornatzky and

Fleischer’s The Processes of Technological Innovation (1990). The book describes the entire

process of innovation stretching from the development of innovations by engineers and

entrepreneurs to the adoption and implementation of those innovations by users within the

context of a firm (Baker 2012). The framework consists of three dimensions: technological,

organizational, and environmental (Wong et al., 2020). Using the model, these factors were

revealed as relevant for this study: compatibility under the technological factor; firm size,

management support, and technological competence under the organizational factor; and

information intensity under the environmental factor. This model, hopefully, will inform

businesses about the technological, organizational, and environmental challenges facing cashless

payment systems (Rahman et al., 2022). This research uses the technology, organization, and

environment (TOE) framework/factors to evaluate which factors provide an impact on the

adoption of cashless payment systems (Tornatzky et al.,1990).

elements of a firm’s context influence adoption decisions. These three elements are
the technological context, the organizational context, and the environmental con-
text. All three are posited to influence technological innovation.
The TOE framework is an organization-level theory that explains that three different
elements of a firm’s context influence adoption decisions. These three elements are
the technological context, the organizational context, and the environmental con-
text. All three are posited to influence technological innovation.
This study analyzes the technological, organizational, and environmental (TOE)

determinants on the readiness of local establishment in Bayawan City on the use of electronic

payment. The importance of this theory for cashless payment systems depends on how quickly

prepared the local establishment in Bayawan City to accept a form of electronic payment through

modern process.
 Figure 1: Theoretical Paradigm of the study

Conceptual Framework

This study utilizes 2 sets of variables, the dependent and independent variables. The

electronic payment system is treated as independent variable while the readiness of local

establishments used as the dependent variable of the study. The independent variable of the

study, the electronic payment system refers to the e-payment introduced in Bayawan City as an

alternative to traditional payment cash-based system such as online banking, cash-cards, mobile

payments, and e-wallet. The dependent variable of the study refers to the preparedness of local

establishments in Bayawan City to adopt and use of e-payment system. It includes the awareness

on factors influencing the use of e-pay, and the perceived risks and threats of e-pay.

The study examines how the variables interact with each other and determines the extent

to which e-pay is used as the mode of monetary transaction among registered establishments in

Bayawan City. The readiness of the local establishments on the use of e-pay influenced by
different factors including technological factors, social factors, and organization’s preferences

wherein they may perceive e-pay as useful, easy to use, and secure. By understanding these

factors and developing effective strategies to promote e-pay usage among the local

establishments, business industry can benefit from the increased efficiency and security provided

by electronic payment methods.

Independent Variable: Dependent Variable:

Electronic payment Readiness of local
system establishments

Figure 2:
Conceptual Paradigm of the Study
This research was divided into five chapters which are Chapter I: Introduction, Chapter II: Theoretical
Background, Chapter III: Methods, Chapter IV: Analysis and interpretation of data, and Chapter V:
Findings, recommendation, and conclusion.

Chapter I of this study is the introduction. This chapter discusses the background of the study,
statement of the problem, significance of the study, operational definition of terms, scope and
limitation, and organization of the study. In the background of the study, the researchers provide the
rationale behind the research problem being investigated and the necessary context and justification for
the guidance of the development of the study design and methods. The statement of the problem
provides a clear understanding of the scope and nature of the problem that specifically sought to
determine the readiness of local establishments on the use of e-pay in Bayawan City. The significance of
the study emphasizes the potential benefits and implications of the study to the merchants, Local
Government Unit of Bayawan City, Negros Oriental State University, BSBA Program, community,
researchers, and future researchers regarding the study on the use of e-pay. The operational definition
of terms refers to the clarification and explanation of key concepts and terminology that were
technically used in the study. The scope and limitations of the study provides the constraints and outline
of the research project. Lastly, the organization of the study discusses the structure and format of the
research study.

Chapter II provides an overview of the theoretical background. The review of related literature
are the collected studies and literature that are timely and relevant that support the research study. The
theoretical framework, specifically Technological, Organizational, and Environment framework, provides
the assumptions and propositions that predict the possible behavior of the local establishments in
relation to the readiness on the use of e-payment. The conceptual framework provides the structure
and roadmap to ensure that the research study is logically and coherently designed and conducted.

Chapter III explains the methodology of the study. The research design of the study,
correlational-survey research design, presents the relationship between the variables in the natural
settings of the study. The research environment pertains to the geographical settings of the study, which
is the establishments in Bayawan City, Negros Oriental. The research respondents present the
participants of the study to further analyze the readiness of local establishments on the use of e-pay.
The research instrument pertains to the tool used to collect data among the participants of the study.
Finally, the research procedure shows the series of activities designed to achieve the research
objectives. This includes the gathering data, treatment of the data, and the ethical considerations of the
study.

Chapter IV is the analysis and interpretation of data. This summarizes collected data and
involves interpretation of data gathered using analytical methods that arrives with the relevant
conclusion about the study.

Chapter V presents the findings, recommendations, and conclusion of the study. In this chapter,
the researchers provide the components summarize the result of the study, draw implications for future
research, and provide the overall assessment of the research outcomes
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Preparation of research
proposal

Collecting theories and

information

Preparation of research
instrument

Validation of questionnaire

Administration and retrieval of

questionnaire

Analysis and interpretation of

data

Result and report writing

Figure 4:
Research Procedure of the Study