Innovation Adoption: An Integrative model

Abstract

Innovation adoption is critical for firms survival and growth. Despite its importance, however, research on the subject is highly fragmented. In this paper, I draw on diverse streams of research to develop a coherent model that depicts adoption as a two-stage process, comprising initiation and implementation. Initiation is the stage at which a decision is made regarding the acceptance or rejection of a given innovation. Perceptual characteristics of the innovation, cognitive traits of the decision makers and environmental stimuli are the key issues here. Implementation concerns the systematic exploitation of the innovation by its intended users. Effective implementation depends on a coherent set of policies facilitating the use of the innovation and, importantly, on the fit of the innovation with the values of its intended users. Finally, the model delineates the role of the wider organizational context as the common ground upon which the adoption process unfolds.

JEL Classifications: M1, O33