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Modeling Reputational and Informational Influences in Threshold Models of Bandwagon Innovation Diffusion

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  • Lori Rosenkopf

    (University of Pennsylvania)

  • Eric Abrahamson

    (University of Pennsylvania)

Abstract

Bandwagon innovation diffusion is characterized by a positive feedback loop where adoptions by some actors increase the pressure to adopt for other actors. In particular, when gains from an innovation are difficult to quantify, such as implementing quality circles or downsizing practices, diffusion is likely to occur through a bandwagon process. In this paper we extend Abrahamson and Rosenkopf&2018;s (1993) model of bandwagon diffusion to examine both reputational and informational influences on this process. We find that the distribution of reputations among the set of potential adopters affects the extent of bandwagon diffusion under conditions of moderate ambiguity, and we find that bandwagons occur even when potential adopters receive information about others&2018; unprofitable experiences with the innovation.

Suggested Citation

  • Lori Rosenkopf & Eric Abrahamson, 1999. "Modeling Reputational and Informational Influences in Threshold Models of Bandwagon Innovation Diffusion," Computational and Mathematical Organization Theory, Springer, vol. 5(4), pages 361-384, December.
    • Handle: RePEc:spr:comaot:v:5:y:1999:i:4:d:10.1023_a:1009620618662
    DOI: 10.1023/A:1009620618662
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    Cited by:

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    2. Dror Etzion, 2014. "Diffusion as Classification," Organization Science, INFORMS, vol. 25(2), pages 420-437, April.
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    6. Francesco Bogliacino & Giorgio Rampa, 2012. "Quality risk aversion, conjectures, and new product diffusion," Journal of Evolutionary Economics, Springer, vol. 22(5), pages 1081-1115, November.
    7. Ning Nan & Robert Zmud & Emre Yetgin, 2014. "A complex adaptive systems perspective of innovation diffusion: an integrated theory and validated virtual laboratory," Computational and Mathematical Organization Theory, Springer, vol. 20(1), pages 52-88, March.
    8. Richard Perkins & Eric Neumayer, 2010. "Geographic Variations in the Early Diffusion of Corporate Voluntary Standards: Comparing ISO 14001 and the Global Compact," Environment and Planning A, , vol. 42(2), pages 347-365, February.
    9. Hongping Yuan & Yu Yang & Xiaolong Xue, 2019. "Promoting Owners’ BIM Adoption Behaviors to Achieve Sustainable Project Management," Sustainability, MDPI, vol. 11(14), pages 1-18, July.
    10. Eric Neumayer & Richard Perkins, 2004. "Uneven geographies of organizational practice: explaining the cross-national transfer and adoption of ISO 9000," Industrial Organization 0403006, University Library of Munich, Germany.
    11. Daisuke Uchida, 2021. "The consequence of differences: How heterogeneity in practice adaptations affects the diffusion process," Asia Pacific Journal of Management, Springer, vol. 38(1), pages 209-230, March.
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    13. Stefano Balbi & Carlo Giupponi, 2009. "Reviewing agent-based modelling of socio-ecosystems: a methodology for the analysis of climate change adaptation and sustainability," Working Papers 2009_15, Department of Economics, University of Venice "Ca' Foscari".

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