Living Reference Work Entry

The Palgrave Encyclopedia of Strategic Management

pp 1-5

Date: Latest Version

Technology Adoption

  • Chris FormanAffiliated withGeorgia Institute of Technology Email author 
  • , Avi GoldfarbAffiliated withRotman School of Management
  • , Shane GreensteinAffiliated withNorthwestern University

Abstract

Using examples from information technology adoption, we emphasize the role of costs, benefits, communications channels and dynamic considerations in the decision to adopt new technology. We discuss differences between adoption by consumers and adoption by firms. We emphasize the adoption of business process innovations, which alter organizational practices and often involve the post-adoption invention of complementary business processes and adaptations. Within the context of business adoption, we discuss the inherent challenges in identifying the decision maker and the role of competition in influencing the benefits to adoption.