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Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

Article
Publication date: 26 June 2019

P.K. Kapur, Saurabh Panwar and Ompal Singh

This paper aims to develop a parsimonious and innovative model that captures the dynamics of new product diffusion in the recent high-technology markets and thus assist both…

Abstract

Purpose

This paper aims to develop a parsimonious and innovative model that captures the dynamics of new product diffusion in the recent high-technology markets and thus assist both academicians and practitioners who are eager to understand the diffusion phenomena. Accordingly, this study develops a novel diffusion model to forecast the demand by centering on the dynamic state of the product’s adoption rate. The proposed study also integrates the consumer’s psychological point of view on price change and goodwill of the innovation in the diffusion process.

Design/methodology/approach

In this study, a two-dimensional distribution function has been derived using Cobb–Douglas’s production function to combine the effect of price change and continuation time (goodwill) of the technology in the market. Focused on the realistic scenario of sales growth, the model also assimilates the time-to-time variation in the adoption rate (hazard rate) of the innovation owing to companies changing marketing and pricing strategies. The time-instance upon which the adoption rate alters is termed as change-point.

Findings

For validation purpose, the developed model is fitted on the actual sales and price data set of dynamic random access memory (DRAM) semiconductors, liquid crystal display (LCD) monitors and room air-conditioners using non-linear least squares estimation procedure. The results indicate that the proposed model has better forecasting efficiency than the conventional diffusion models.

Research limitations/implications

The developed model is intrinsically restricted to a single generation diffusion process. However, technological innovations appear in generations. Therefore, this study also yields additional plausible directions for future analysis by extending the diffusion process in a multi-generational environment.

Practical implications

This study aims to assist marketing managers in determining the long-term performance of the technology innovation and examine the influence of fluctuating price on product demand. Besides, it also incorporates the dynamic tendency of adoption rate in modeling the diffusion process of technological innovations. This will support the managers in understanding the practical implications of different marketing and promotional strategies on the adoption rate.

Originality/value

This is the first attempt to study the value-based diffusion model that includes key interactions between goodwill of the innovation, price dynamics and change-point for anticipating the sales behavior of technological products.

Details

Journal of Modelling in Management, vol. 14 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 20 April 2020

Wei Liu, Runhua Tan, Zibiao Li, Guozhong Cao and Fei Yu

The purpose of this paper is to investigate the diffusion patterns of knowledge in inspiring technological innovations and to enable monitoring development trends of technological…

1021

Abstract

Purpose

The purpose of this paper is to investigate the diffusion patterns of knowledge in inspiring technological innovations and to enable monitoring development trends of technological innovations based on patent data analysis, thus, to manage knowledge wisely to innovate.

Design/methodology/approach

The notion of knowledge innovation potential (KIP) is proposed to measure the innovativeness of knowledge by the cumulative number of patents originated from its inspiration. KIP calculating formula is regressed in forms of two specific diffusion models by conducting a series of empirical studies with the patent-based indicators involving forward and backward citation numbers to reveal knowledge managing strategies regarding innovative activities.

Findings

Two specific diffusion models for regressing KIP formula are compared by empirical studies with the result indicating the Gompertz model has higher accuracy than the Logistic model to describe the developing curve of technological innovations. Moreover, the analysis of patent-based indicators over diffusion stages also revealed that patents applied at earlier diffusion stages normally has higher forward citation numbers indicating higher innovativeness meanwhile the patents applied at the latter stages usually requiring more knowledge inflows observed by their larger non-patent citation and backward citation amounts.

Originality/value

Although there is a large body of literature concerning knowledge-based technological innovation, there still room for discussing the mechanism of how knowledge diffuses and inspired knowledge. To the best of authors' knowledge, this study is the first attempt to quantitate the innovativeness of knowledge in technological innovation from the knowledge diffusion perspective with findings to support rational knowledge management related to innovation activities.

Details

Journal of Knowledge Management, vol. 25 no. 2
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 1 June 2005

Ben Shaw‐Ching Liu, Ravindranath Madhavan and D. Sudharshan

To provide an explicit model to address the relationships between the structural characteristics of a network and the diffusion of innovations through it. Further, based on the…

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Abstract

Purpose

To provide an explicit model to address the relationships between the structural characteristics of a network and the diffusion of innovations through it. Further, based on the above relationships, this research tries to provide a way to infer diffusion curve parameters (innovation coefficient and imitation coefficient) from network structure (e.g. centralization).

Design/methodology/approach

Based on the network and innovation literatures, we develop a model explicitly relating the structural properties of the network to its innovation and imitation potential, and in turn to the observed diffusion parameters (innovation and imitation coefficients). We first employ current theoretical and empirical results to develop postulates linking six key network properties to innovation and imitation outcomes, and then seek to model their effects in an integrative manner. We argue that the innovation and imitation potentials of a network may be increased by strategically re‐designing the underlying network structure. We validated the model by searching the published empirical literature for available published data on network properties and innovation and imitation coefficients.

Findings

We validated the model by searching the published empirical literature for available published data on network properties and innovation and imitation coefficients. The results reported from various relevant research papers support our model.

Practical implications

This research shows that the innovation and imitation potentials of a network may be increased by strategically re‐designing the underlying network structure; hence, provide guidelines for new product managers to enhance the performance of innovative products by re‐design the underlying network structure.

Originality/value

The model developed in this paper is a breaking through result of synthesizing various traditions of diffusion research, ranging from anthropology and economics to marketing which were developed independently. The research explicitly modeled the diffusion process in terms of the underlying network structure of the relevant population allowing managers and researchers to directly link the diffusion parameters to the structural properties of the network. By doing so, it added value by making it possible to infer diffusion potential from directly measurable network properties. Vis‐à‐vis the network diffusion literature in particular, we added value by “unpacking” the diffusion process into innovation and imitation processes that form the building blocks of contagion. Moreover, we developed a holistic structural model of network diffusion which integrates the several network properties that have hitherto been studied separately.

Details

European Journal of Innovation Management, vol. 8 no. 2
Type: Research Article
ISSN: 1460-1060

Keywords

Abstract

Details

Beyond the Digital Divide: Contextualizing the Information Society
Type: Book
ISBN: 978-1-78756-548-7

Article
Publication date: 7 April 2015

M.Reza Hosseini, Nicholas Chileshe, Jian Zuo and Bassam Baroudi

This study aims to present an integrated conceptual model in order to highlight the major aspects of diffusion of innovations in the architecture, engineering and construction…

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Abstract

Purpose

This study aims to present an integrated conceptual model in order to highlight the major aspects of diffusion of innovations in the architecture, engineering and construction (AEC) context. To this end, a critical review of literature is conducted, accompanied by synthesising the findings of previous studies. The driving force behind this study is stemmed from the fragmentation of literature on innovation diffusion, and paucity of research on diffusion of Global Virtual Engineering Teams (GVETs) as the platform for many technological innovations in relevant literature. Thus, the present study is intended to facilitate filling the gap in GVETs literature. That is, the proposed model will offer a foundation for academia for grounding studies on any innovation including GVETs in the literature on innovation diffusion in the AEC context.

Design/methodology/approach

This paper draws upon the qualitative meta-analysis approach encompassing a critical review of the relevant literature. To this end, the review builds upon studies found within 15 prestigious journals in AEC. The domain of this review was confined to areas described as “innovation”, “innovation diffusion” and “innovation adoption”, along with keywords used within a broad review of recently published GVETs literature. The rigour of review is augmented by incorporating 35 authoritative works from other disciplines published in 21 well-known journals in the manufacturing, business and management fields. Moreover, the study deploys the peer-debriefing approach through conducting unstructured interviews with five Australian scholars to verify a model presenting an aggregated summary of previous studies.

Findings

The key findings of the study include the following items: synthesising the fragmented studies on innovation diffusion in the AEC context. In doing so, a model capturing the major aspects affecting diffusion of an innovation in AEC projects is presented; providing a foundation to address the drawbacks of previous studies within the sphere of GVETs, based on the developed model.

Research limitations/implications

The developed model was only enhanced using a small sample size of academics, as such not empirically validated.

Originality/value

As possibly, the first literature review of innovation in the AEC context, this paper contributes to the sphere by sensitising the AEC body of knowledge on innovation diffusion as a concise conceptual model, albeit verified through the peer-debriefing approach. This study will also further establish the research field in AEC on GVETs along with other methods reliant on virtual working such as building information modelling (BIM) through providing an expanded foundation for future inquiries and creation of knowledge.

Details

Construction Innovation, vol. 15 no. 2
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 19 October 2010

Hui‐Chih Wang and Her‐Sen Doong

Taiwan is one of several leading countries in the mobile music context. Accordingly, Taiwan's experiences in promoting mobile music service diffusion are of importance and…

Abstract

Purpose

Taiwan is one of several leading countries in the mobile music context. Accordingly, Taiwan's experiences in promoting mobile music service diffusion are of importance and interest to international practitioners and researchers. Applying Rogers' innovation diffusion theory, this study aims to employ econometric models to investigate whether the diffusion of mobile music service adoption is affected by external influences (e.g. mass media advertising, salespeople, and service providers), internal influences (e.g. interactions and imitations among acquaintances), or a combination of such influences.

Design/methodology/approach

To determine which influence best explained the diffusion of mobile music adoptions, the external, internal, and Von Bertalanffy mixed influence diffusion models were tested in this study. GNUS, a strongly functional language and environment to statistically explore data sets, was used to estimate the parameters of each model. The performance of each diffusion model was then examined using the Akaike AIC and Schwarz BIC statistics.

Findings

Findings indicated that the Von Bertalanffy mixed influences model best describes the diffusion pattern of mobile music service adoption and that acquaintances' influence in terms of interactions is the dominant factor influencing mobile music service adoption decision in Taiwan.

Originality/value

How managers of a mobile music service provider can use the internal and external influences interchangeably to effectively accelerate the mobile music diffusion at the different stage of product lifecycle is presented in this study. Indeed, the mobile music service is one of the most important industries worldwide not only because its penetration rate in many countries is over 50 percent, but also because of its killer applications. In light of this, the study contributes highly to theoretical and empirical examinations because the diffusion of the mobile music services within a society is the essence of the development/usage of the m‐commerce or music industries.

Details

Management Decision, vol. 48 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1306-6

Article
Publication date: 29 May 2020

Niharika Dayyala, Syed Kashif Raza Zaidi and Kallol Bagchi

This study aims to examine the diffusion pattern of International Financial Reporting Standards (IFRS) into the countries and identifies the channels of diffusion.

Abstract

Purpose

This study aims to examine the diffusion pattern of International Financial Reporting Standards (IFRS) into the countries and identifies the channels of diffusion.

Design/methodology/approach

Data includes 98 countries that made a public commitment to IFRS adoption from 2000 to 2016. Adoptee countries are categorized based on Rogers’ adopter categorizations to understand country characteristics. Innovation diffusion models such as internal influence, external influence and bass diffusion that explain diffusion patterns are applied to the cumulative adoption of IFRS. Coefficients of internal and external diffusion are obtained using the models to explain the mode of diffusion pattern of IFRS. Further tests are done to identify the best model that explains IFRS diffusion.

Findings

Findings show that IFRS diffusion is a result of external influence through vertical communication from a centralized body (IASB) and internal influence due to imitation and interpersonal communication between countries. Imitation effect among the countries has a stronger effect on the IFRS adoption compared to the communication obtained from IASB.

Practical implications

Findings obtained can help standards-setting bodies, organizations and countries to understand the potential future of adopters and non-adopters. It facilitates the standard-setting bodies to manage IFRS diffusion by implementing measures to spread the word on the benefits of IFRS.

Originality/value

The study generates value by modeling a successive increase in the number of IFRS adoptee countries using empirical methods and identifies the reasons for the diffusion life cycle of IFRS.

Details

International Journal of Accounting & Information Management, vol. 28 no. 4
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 13 November 2017

Jarunee Wonglimpiyarat

This paper aims to explore FinTech and its dynamic transitions in the banking industry. In particular, the study analyses the systemic innovation nature of FinTech-based…

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Abstract

Purpose

This paper aims to explore FinTech and its dynamic transitions in the banking industry. In particular, the study analyses the systemic innovation nature of FinTech-based innovations. The main contribution of this research study is the development of systemic innovation model which can be used as a dynamic tool to track the progress and pattern of technology development and diffusion. The research also discusses the latest financial innovation of PromptPay FinTech – the e-payment system in Thailand.

Design/methodology/approach

This research uses the case study approach to analyse the systemic innovation characteristics of FinTech-based innovations. This research offers a new systemic innovation model which is developed and can be used as a dynamic tool to track the progress and pattern of technology development and diffusion. The study uses FinTech-based innovations as case study samples to gain a better understanding concerning the systemic characteristics and the pattern of technology diffusion under the analytical framework of systemic innovation model. This research involves qualitative interviews with five major commercial banks in the financial services industry of Thailand.

Findings

The analyses of findings show the systemic characteristics of FinTech-based innovations in the banking industry, both at a global scale and Thailand case. The analyses have shown that systemic characteristics of the innovation process are the outcome of interactions between the complexity of the innovation and the capabilities of innovators in managing the innovation. The insightful implications on the systemic nature of innovation give the trend and direction of FinTech-based innovation development in the banking industry.

Originality/value

The main contribution which shows originality and value of this paper is the development of systemic innovation model. This research study develops a systemic innovation model to analyse the systemic characteristics which can be applied to all innovations in any industry. The model can also help track the progress and pattern of technology development and diffusion. Therefore, the model can be used to project the trend and diffusion of innovation competition in the banking industry.

Details

foresight, vol. 19 no. 6
Type: Research Article
ISSN: 1463-6689

Keywords

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