Expectations, Network Effects and Timing of Technology Adoption: Some Empirical Evidence from a Sample of SMEs in Italy
AbstractWe provide evidence on the influence of expectations and network effects on the timing of technological adoption. By considering a sample of SMEs operating in Italy we focus on the determinants of their decision to adopt Fast Ethernet, a communication standard for Local Area Networks (LANs). We find that both expectations and network effects significantly affect the timing of adoption. In particular, price expectations generally tend to delay adoption and (indirect) network effects in the form of backward compatibility as well as informational spillovers tend to foster adoption. Firm size also matters.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by SPRU - Science and Technology Policy Research, University of Sussex in its series SPRU Working Paper Series with number 150.
Length: 36 pages
Date of creation: 19 Apr 2006
Date of revision:
Contact details of provider:
Postal: Jubilee Building G08, Falmer, Brighton, BN1 9SL
Phone: +44 (0)1273 686758
Fax: +44 (0)1273 685865
Web page: http://www.sussex.ac.uk/spru
More information through EDIRC
diffusion; network effects; expectations; LAN equipment; SMEs;
Other versions of this item:
- Nicoletta Corrocher & Roberto Fontana, 2008. "Expectations, network effects and timing of technology adoption: some empirical evidence from a sample of SMEs in Italy," Small Business Economics, Springer, vol. 31(4), pages 425-441, December.
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-29 (All new papers)
- NEP-INO-2006-04-29 (Innovation)
- NEP-NET-2006-04-29 (Network Economics)
- NEP-SOC-2006-04-29 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Stewart, Mark B, 1982.
"On Least Squares Estimation when the Dependent Variable is Grouped,"
The Warwick Economics Research Paper Series (TWERPS)
207, University of Warwick, Department of Economics.
- Stewart, Mark B, 1983. "On Least Squares Estimation When the Dependent Variable Is Grouped," Review of Economic Studies, Wiley Blackwell, vol. 50(4), pages 737-53, October.
- Corrocher, Nicoletta & Fontana, Roberto, 2008. "Objectives, obstacles and drivers of ICT adoption: What do IT managers perceive?," Information Economics and Policy, Elsevier, vol. 20(3), pages 229-242, September.
- Nicholas Economides & Charles Himmelberg, 1995. "Critical Mass and Network Size with Application to the US Fax Market," Working Papers 95-11, New York University, Leonard N. Stern School of Business, Department of Economics.
- Church, Jeffrey & Gandal, Neil, 2004. "Platform Competition in Telecommunications," CEPR Discussion Papers 4659, C.E.P.R. Discussion Papers.
- Michael Demoussis & Nicholas Giannakopoulos, 2006. "Facets of the digital divide in Europe: Determination and extent of internet use," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 235-246.
- Battisti, Giuliana & Stoneman, Paul, 2005. "The intra-firm diffusion of new process technologies," International Journal of Industrial Organization, Elsevier, vol. 23(1-2), pages 1-22, February.
- Rosenberg, Nathan, 1976. "On Technological Expectations," Economic Journal, Royal Economic Society, vol. 86(343), pages 523-35, September.
- Karshenas, Massoud & Stoneman, Paul, 1990.
"Rank, Stock, Order And Epidemic Effects In The Diffusion Of New Process Technologies : An Empirical Model,"
The Warwick Economics Research Paper Series (TWERPS)
358, University of Warwick, Department of Economics.
- Massoud Karshenas & Paul L. Stoneman, 1993. "Rank, Stock, Order, and Epidemic Effects in the Diffusion of New Process Technologies: An Empirical Model," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 503-528, Winter.
- Stoneman, Paul & Kwon, Myung-Joong, 1994. "The Diffusion of Multiple Process Technologies," Economic Journal, Royal Economic Society, vol. 104(423), pages 420-31, March.
- Stoneman, P & Ireland, N J, 1983. "The Role of Supply Factors in the Diffusion of New Process Technology," Economic Journal, Royal Economic Society, vol. 93(369a), pages 66-78, Supplemen.
- Windrum,Paul & Berranger,Pascale,de, 2003. "Factors affecting the adoption of intranets and extranets by SMEs: a UK study," Research Memoranda 026, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Balcer, Yves & Lippman, Steven A., 1984. "Technological expectations and adoption of improved technology," Journal of Economic Theory, Elsevier, vol. 34(2), pages 292-318, December.
- Goolsbee, Austan & Klenow, Peter J, 2002.
"Evidence on Learning and Network Externalities in the Diffusion of Home Computers,"
Journal of Law and Economics,
University of Chicago Press, vol. 45(2), pages 317-43, October.
- Austan Goolsbee & Peter J. Klenow, 1999. "Evidence on Learning and Network Externalities in the Diffusion of Home Computers," NBER Working Papers 7329, National Bureau of Economic Research, Inc.
- Heli Koski, 1999. "The Installed Base Effect: Some Empirical Evidence From The Microcomputer Market," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(4), pages 273-310.
- David Dranove & Neil Gandal, 2003. "The Dvd-vs.-Divx Standard War: Empirical Evidence of Network Effects and Preannouncement Effects," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 363-386, 09.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Russell Eke).
If references are entirely missing, you can add them using this form.