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The Role of Networks In the Diffusion of Technological Innovation

Author

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  • Maxine Robertson
  • Jacky Swan
  • Sue Newell

Abstract

This research considers the diffusion of computer‐aided production management (CAPM) technology in the UK manufacturing sector during the mid to late 1980s, focusing on the role of inter‐organizational networks in the diffusion process. Research on innovation diffusion has tended to adopt a ‘pro‐innovation bias’ such that adoption of prescribed best practice technologies is always considered to be the best policy. In the UK, one particular form of CAPM (MRP/MRPII) has been heavily promoted by technology suppliers as best practice. However, the notion of ‘best practice’ de‐emphasizes the importance of decisions about technology design when users attempt to develop firm‐specific solutions. Crucial to these decisions are the inter‐organizational networks through which potential adopters learn about relevant technologies. Using three case companies, where the introduction of CAPM occurred at approximately the same time, decisions regarding adoption, design and subsequent implementation, are explored in order to establish the influence of inter‐organizational networks on the diffusion and subsequent appropriation of CAPM technologies. These cases revealed that potential adopters engaged in a range of inter‐organizational networks through which they learned about new technologies. However, the knowledge diffused through many of these networks was shaped by technology suppliers who were promoting similar ideas about best practice. Thus, while involvement in inter‐organizational networks gave potential adopters access to information about new technology, this information tended to reinforce supplier images of best practice and did not always lead these firms to develop appropriate technological solutions. Problematic relationships between the suppliers of the technology and the users was seen here to limit the redesign and further diffusion of CAPM.

Suggested Citation

  • Maxine Robertson & Jacky Swan & Sue Newell, 1996. "The Role of Networks In the Diffusion of Technological Innovation," Journal of Management Studies, Wiley Blackwell, vol. 33(3), pages 333-359, May.
    • Handle: RePEc:bla:jomstd:v:33:y:1996:i:3:p:333-359
    DOI: 10.1111/j.1467-6486.1996.tb00805.x
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    Cited by:

    1. Thomas Sampson, 2016. "Dynamic Selection: An Idea Flows Theory of Entry, Trade, and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(1), pages 315-380.
    2. McEachern, Menzie & Hanson, Susan, 2008. "Socio-geographic perception in the diffusion of innovation: Solar energy technology in Sri Lanka," Energy Policy, Elsevier, vol. 36(7), pages 2578-2590, July.
    3. Shyaam Ramkumar, 2020. "Influence of Inter-Firm Network Relationships on Circular Economy Eco-Innovation Adoption," Sustainability, MDPI, vol. 12(18), pages 1-22, September.
    4. George Kuk, 2006. "Strategic Interaction and Knowledge Sharing in the KDE Developer Mailing List," Management Science, INFORMS, vol. 52(7), pages 1031-1042, July.
    5. Kobos, Peter H. & Erickson, Jon D. & Drennen, Thomas E., 2006. "Technological learning and renewable energy costs: implications for US renewable energy policy," Energy Policy, Elsevier, vol. 34(13), pages 1645-1658, September.
    6. Chung, Seungwha (Andy) & Kim, Gyeong Mook, 2003. "Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint," Research Policy, Elsevier, vol. 32(4), pages 587-603, April.
    7. Piotr Tomasz Makowski & Yuya Kajikawa, 2021. "Automation-driven innovation management? Toward Innovation-Automation-Strategy cycle," Papers 2103.02395, arXiv.org.
    8. Fountain, Jane E., 2003. "Information, Institutions and Governance: Advancing a Basic Social Science Research Program for Digital Government," Working Paper Series rwp03-004, Harvard University, John F. Kennedy School of Government.
    9. Carol Pollard, 2003. "Exploring Continued and Discontinued Use of IT: A Case Study of OptionFinder, a Group Support System," Group Decision and Negotiation, Springer, vol. 12(3), pages 171-193, May.
    10. Tobias Buchman & Andreas Pyka, 2012. "Innovation Networks," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 33, Edward Elgar Publishing.
    11. Jessica Breaugh & Keegan McBride & Moritz Kleinaltenkamp & Gerhard Hammerschmid, 2021. "Beyond Diffusion: A Systematic Literature Review of Innovation Scaling," Sustainability, MDPI, vol. 13(24), pages 1-21, December.
    12. Andreas Schwab, 2007. "Incremental Organizational Learning from Multilevel Information Sources: Evidence for Cross-Level Interactions," Organization Science, INFORMS, vol. 18(2), pages 233-251, April.
    13. Makowski, Piotr Tomasz & Kajikawa, Yuya, 2021. "Automation-driven innovation management? Toward Innovation-Automation-Strategy cycle," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    14. Joseph O'Mahoney, 2007. "The Diffusion of Management Innovations: The Possibilities and Limitations of Memetics," Journal of Management Studies, Wiley Blackwell, vol. 44(8), pages 1324-1348, December.
    15. Lueg, Rainer & Radlach, Ronny, 2016. "Managing sustainable development with management control systems: A literature review," European Management Journal, Elsevier, vol. 34(2), pages 158-171.
    16. Andrew Peterman & Arno Kourula & Raymond Levitt, 2020. "Organizational roles in a sustainability alliance network," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3314-3330, December.
    17. Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 107-129.

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