Adoption dynamics of increasing-return technologies in systemic contexts

Mäkinen, Saku J., Kanniainen, Juho, & Dedehayir, Ozgur (2013) Adoption dynamics of increasing-return technologies in systemic contexts. Technological Forecasting and Social Change, 80(6), pp. 1140-1146.

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Abstract

Many systemic, complex technologies have been suggested to exhibit increasing returns to adoption, whereby the initial increase in adoption leads to increasing experience with the technology, which drives technological improvements and use, subsequently leading to further adoption. In addition, in the systemic context, mimetic behavior may lend support to increasing returns as technology adoption is witnessed among other agents in the systemic context. Finally, inter-dependencies in the systemic context also sensitize the adoption behavior to fundamental changes in technology provisioning, and this may lend support for the increasing returns type of dynamics in adoption. Our empirical study examines the dynamics of organizational technology adoption when technology is provisioned by organizations in another sub-system in a systemic context. We hypothesize that innovation, imitation, and technological change effects are present in creating increasing returns in the systemic context. Our empirical setting considers 24 technologies represented by 2282 data points in the computer industry. Our results provide support for our prediction that imitation effects are present in creating increasing returns to adoption. We further discuss the managerial and research implications of our results.

Impact and interest:

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ID Code: 85636
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: Technology Diffusion, Adoption Dynamics, Technology Systems, Increasing Returns
DOI: 10.1016/j.techfore.2012.04.004
ISSN: 0040-1625
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Innovation and Technology Management (150307)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2012 Elsevier
Deposited On: 16 Jul 2015 23:06
Last Modified: 20 Jul 2015 00:56

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