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How information and communication technology affects decision‐making on innovation diffusion: An agent‐based modelling approach

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  • Carlos M. Fernández‐Márquez
  • Francisco J. Vázquez

Abstract

We introduce a computational agent‐based model of innovation diffusion that allows us to analyse the influence of information and communication technology (ICT) development on decision‐making. Model dynamics are based on local emulation between pairs of individuals that generate an evolving social network on which an innovation is virally spread (by word of mouth). Results suggest that ICT development affects the data usefulness for decision‐making by changing the topology of the social network (the means whereby the innovation is propagated). Paradoxically, a higher level of ICT development (providing a larger volume of data) narrows the differences between better and worse launch strategies, thus reducing data‐driven decision‐making usefulness, which then shows diminishing returns on the ICT level.

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  • Carlos M. Fernández‐Márquez & Francisco J. Vázquez, 2018. "How information and communication technology affects decision‐making on innovation diffusion: An agent‐based modelling approach," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 25(3), pages 124-133, July.
    • Handle: RePEc:wly:isacfm:v:25:y:2018:i:3:p:124-133
    DOI: 10.1002/isaf.1430
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    Cited by:

    1. Yang Yang & Xuezheng Chen & Jing Gu & Hamido Fujita, 2019. "Alleviating Financing Constraints of SMEs through Supply Chain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.

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