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He came, he saw, (and) he waited: an empirical analysis of inertia in technology adoption

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  • Diansheng Dong
  • Atanu Saha

Abstract

The innovation adoption literature has focused primarily on a producer's decision of whether and how much to adopt. An equally pertinent question is when to adopt, because in the case of new technologies it often 'pays to wait' for more information. We propose a double-limit hurdle model to analyse adoption intensity and inertia in the context of a divisible technology. The proposed framework incorporates probit or Tobit models as testable special cases. A maximum likelihood estimation framework is set out and generalized to account for heteroscedastic errors. The empirical analysis, which uses household-level data from India's semi-arid tropics, provides new insights into the factors influencing adoption inertia and intensity.

Suggested Citation

  • Diansheng Dong & Atanu Saha, 1998. "He came, he saw, (and) he waited: an empirical analysis of inertia in technology adoption," Applied Economics, Taylor & Francis Journals, vol. 30(7), pages 893-905.
  • Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:893-905
    DOI: 10.1080/000368498325327
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    References listed on IDEAS

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    1. R.K. Lindner & A.J. Fischer, 1981. "Risk Aversion, Information Quality and the Innovation Adoption Time Lag," School of Economics Working Papers 1981-17, University of Adelaide, School of Economics.
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    Cited by:

    1. Löfgren, Åsa & Millock, Katrin & Nauges, Céline, 2008. "The effect of uncertainty on pollution abatement investments: Measuring hurdle rates for Swedish industry," Resource and Energy Economics, Elsevier, vol. 30(4), pages 475-491, December.
    2. Grisham, Elisabeth & Gillespie, Jeffrey, 2008. "Record-Keeping Technology Adoption among Dairy Farmers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers.
    3. Adela Luque, 2003. "The Role of Technological and Industrial Heterogeneity In Technology Diffusion: a Markovian Approach," Working Papers 03-07, Center for Economic Studies, U.S. Census Bureau.
    4. Grisham, Elisabeth & Gillespie, Jeffrey M., 2007. "Record-Keeping Technology Adoption in the Louisiana Dairy Industry," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34975, Southern Agricultural Economics Association.
    5. Löfgren, Åsa & Millock, Katrin & Nauges, Céline, 2007. "Using Ex Post Data to Estimate the Hurdle Rate of Abatement Investments - An Application to the Swedish Pulp and Paper Industry and Energy Sector," Working Papers in Economics 249, University of Gothenburg, Department of Economics.
    6. Ira Matuschke & Matin Qaim, 2009. "The impact of social networks on hybrid seed adoption in India," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 493-505, September.
    7. Aldana, Ursula & Foltz, Jeremy D. & Barham, Bradford L. & Useche, Pilar, 2010. "The Sequential Adoption of Package Technologies: The Dynamics of Stacked Trait Corn Adoption," Staff Paper Series 556, University of Wisconsin, Agricultural and Applied Economics.
    8. Martin, Ludivine, 2009. "Understanding the implementation of e-business strategies: Evidence from Luxembourg," MPRA Paper 13645, University Library of Munich, Germany.
    9. repec:hal:journl:halshs-00343702 is not listed on IDEAS
    10. 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.
    11. repec:spr:ssefpa:v:9:y:2017:i:4:d:10.1007_s12571-017-0707-x is not listed on IDEAS
    12. repec:hal:journl:halshs-00261523 is not listed on IDEAS
    13. 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.
    14. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.
    15. Abdulai, Awudu & Owusu, Victor & Bakang, John-Eudes A., 2011. "Adoption of safer irrigation technologies and cropping patterns: Evidence from Southern Ghana," Ecological Economics, Elsevier, vol. 70(7), pages 1415-1423, May.
    16. Anna Giunta & Francesco Trivieri, 2007. "Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1325-1334.
    17. Johan F.M.Swinnen & Thijs Vandemoortele, 2011. "On Butterflies and Frankenstein: A Dynamic Theory of Regulation," LICOS Discussion Papers 27611, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

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