Market Structure, Uncertainty, and Intrafirm Diffusion: The Case of Optical Scanners in Grocery Stores
This study uses monthly data on the adoption of optical scanners by sixty-three grocery chains in thirty-two large U.S. cities to identify the determinants of the rate of intrafirm diffusion. The methodology involves a two-stage approach that relates market environment characteristics to the estimated rate of intrafirm diffusion. The results indicate that firms with larger market shares adopt a new innovation (scanners) more quickly initially but diffuse the innovation through their stores more slowly than firms with smaller market shares. In addition, firms that lag competitors in the initial adoption of scanners tend to diffuse the innovation more quickly. Copyright 1992 by MIT Press.
Volume (Year): 74 (1992)
Issue (Month): 2 (May)
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