Overcoming consumer resistance to innovations – an analysis of adoption triggers

Traditionally, innovation adoption research has focused on the determinants of the states ‘adoption’ and ‘nonadoption’. Aiming at a more detailed understanding of innovation adoption and resistance behavior, this study takes a different perspective and analyzes the transition stage between the nonadoption state and the adoption state to investigate triggers that overcome initial consumer resistance. The study seeks to answer three questions within this novel perspective: (1) What are triggers that lead nonadopters to become adopters? (2) Do adopters and nonadopters differ in their assessment of adoption triggers? and (3) How do adoption triggers relate to innovation adoption barriers? We apply a qualitative exploratory approach that relies on 160 face‐to‐face interviews with both adopters and nonadopters about nine different innovations to generate a framework of adoption triggers. The results reveal that adoption triggers fall into three broad categories: ‘increasing innovation attraction’, ‘reducing barriers’ or ‘tilting the system’. In addition, we find that adopters and nonadopters differ significantly in their assessment of (potential) adoption triggers. Nonadopters mention performance improvements more frequently as crucial adoption triggers than adopters do. In contrast, adopters indicate knowledge acquisition and a social system push significantly more often than nonadopters do. However, adoption triggers and corresponding adoption barriers do not appear to be linked in a systematic way. Instead, adoption triggers such as a social system push exert influence independent of the existing adoption barriers. We suggest strategies for pre‐ and postlaunch strategies to facilitate adoption triggers. We also discuss the implications of our findings for theory and present further research opportunities.     

The Effect of Personal and Virtual Word‐of‐Mouth on Technology Acceptance

This paper extends the Technology Acceptance Model (TAM) to incorporate the impact of personal and virtual word‐of‐mouth (pWOM and vWOM). The authors hypothesize that both types of word‐of‐mouth will be positively related with consumer perceptions of innovation usefulness and perceived ease of use. In addition, the authors examine two competing hypotheses regarding the relative impact of pWOM and vWOM on perceptions of innovation attributes. One hypothesis argues that potential adopters place more weight on pWOM sources because they perceive relatively more similarity between themselves and pWOM sources. The alternative hypothesis argues that potential adopters place more weight on vWOM sources because those sources (relative to pWOM sources) expose potential adopters to a wider variety of information and a larger number of experts. Finally, the authors argue that symbolic product usage will enhance the relationship between word‐of‐mouth and consumer perceptions of innovation attributes. These hypotheses are tested using data collected in Japan from over 600 potential adopters of Blu‐ray DVD recorders and smart phones. Findings indicate that, in both product categories, pWOM and vWOM are positively and significantly related with perceived ease of use. Moreover, in both samples pWOM is positively and significantly related with perceived usefulness, while vWOM is significantly related with perceived usefulness only in the smart phone sample. With regard to the relative impact of pWOM and vWOM on perceptions of innovation attributes, results indicate that vWOM has a larger impact on potential adopter perceptions of ease of use. Finally, the estimated model provides support for the hypothesis that symbolic consumption increases the impact of word‐of‐mouth on perceptions of innovation attributes. In particular, findings indicate that the impact of pWOM on perceptions of innovation usefulness is higher among potential adopters of smart phones than among potential adopters of Blu‐ray DVD recorders. Similarly, the impact of vWOM on perceptions of ease of use is higher among potential smart phone adopters than among potential adopters of Blu‐ray DVD recorders.     

Intermediating technologies and multi-group adoption: A comparison of consumer and merchant adoption intentions toward a new electronic payment system

Traditional technology adoption research has assumed a single adopting group. However, there are many settings in which multiple groups must jointly adopt an innovation in order for it to succeed. This is particularly true for new information technology innovations that mediate the relationship between two groups. For example, online exchanges (e.g., Freemarkets, GoFish) must attract both suppliers and buyers in order to be successful. The same is true for providers of hardware/software solutions for electronic data interchange and supply chain management. This article describes the phenomenon of multigroup adoption with a particular focus on applications within the financial services and retailing industries. Empirically, the article reports findings from a study that illustrates the importance of evaluating and managing multigroup technology adoption in the specific context of an in‐market trial of a new smart card‐based electronic payment system. Two distinct groups critical to the smart card's success are studied: consumers (who must decide to use the new card) and retailers (who must agree to adopt and use new technology needed to process smart card transactions). The study identifies which characteristics of the smart card innovation are most closely linked to intention to adopt for each group, and examines how these key characteristics differ by group. Perceptual data were collected via a mail survey from consumers and merchants living in the city where a one‐year market trial of the new card was taking place. Four separate sampling frames were established for both consumers and merchants who were participating in the trial as well as both consumers and merchants who were not participating in the trial. Random samples were then drawn from these frames. More than 350 consumers and over 250 merchants completed and returned the survey. Responses were analyzed separately for each of the four groups sampled. The most important characteristic leading to adoption identified by all four groups was relative advantage—the smart card had to demonstrate a clear competitive advantage over what they currently used. Compatibility (i.e., the degree to which the smart card fit with their current preferences) was also noted as important to all but the nonparticipating merchant group. Beyond this, the key drivers of adoption differed considerably by group. Participating consumers and participating merchants appeared to possess different perspectives when assessing their decision to adopt the smart card technology. Consumers seemed to value the notion that the adoption decision is under their control, whereas merchants seemed to place more value on the antecedents that had the potential to add to their bottom line. This suggests that it is necessary to institute different marketing tactics to attract the early adopting groups. In addition, significant differences in the importance of antecedents between participating and nonparticipating consumers and participating and nonparticipating merchants suggest that, over time, it may also be necessary to develop and use different marketing tactics for later adopters.     

Being Innovative While Being Green: An Experimental Inquiry into How Consumers Respond to Eco‐Innovative Product Designs

Eco‐innovations are an effective way for companies to strategically align themselves with customers’ growing environmental concerns. Despite their crucial role, scant research has focused on eco‐innovative product designs. Drawing from the sustainability and innovation literature, this article proposes that in the design of an eco‐innovation, its degree of innovativeness, level of eco‐friendliness, and detachability significantly affect consumers' adoption intentions. This article develops various conceptual models tested through three independent online experiments with U.S. consumers. The findings support the hypotheses and provide useful insights into the underlying mechanisms of how and why consumers respond to eco‐innovative product designs across various high‐tech product categories. Specifically, the results show (1) a positive effect of innovativeness degrees of eco‐innovative attributes on consumers' perceptions of product eco‐friendliness and on their adoption intentions as well as a significant moderating role of consumers' need for cognition (Study 1); (2) a positive influence of eco‐friendliness levels of eco‐innovative attributes on consumer adoption intentions in the case of high‐complexity products but not for low‐complexity products, emphasizing the need to adopt different approaches when developing eco‐innovations to ensure favorable consumer reactions (Study 2); and (3) a significant impact of the detachability of eco‐innovative attributes on consumers' perceptions of trade‐offs between environmental benefits and product functionality and on their intentions to adopt eco‐innovations (Study 3). These findings add to existing theoretical knowledge, provide actionable managerial implications, and identify fruitful avenues for future research.     

Understanding early diffusion of digital wireless phones

There is increasing empirical evidence from academic research and strong recognition among policymakers that wide diffusion and innovative uses of digital wireless phones are important sources of a country's economic growth and social development. Adopters do not necessarily adopt digital wireless phones at the same time though. Although the diffusion of innovation theory suggests five adopter categories according to their degree of innovativeness, this approach lacks theoretical justification and, more importantly, it makes a critical assumption of a normal distribution of adopters that needs empirical validation. This study investigates the basis for defining different adopter categories and factors that affect adoption decisions of digital wireless phones using the aggregate data on 46 developed and developing countries from 1992 to 2002. This paper utilizes a two-step analysis approach. The first step evaluates the distribution of adopters over time using various diffusion models. The second step uses iterative survival analysis to examine the patterns of influential factors on adoption behavior by evaluating the survival models using a 1% increment of cumulative penetration as the targeted events. The results of the best-fitting diffusion models indicate that digital wireless phone adoption patterns did not follow a normal distribution and did not map exactly into Rogers’ five adopter categories. The results from the iterative survival analysis suggest four adopter categories (innovators, early adopters, breakthrough adopters, and mainstream adopters) among the first 30% of adopters. Different factors are observed to influence various adopter categories’ adoption decisions. The results offer insights to support telecommunication operators to develop strategies to attract these adopters. It also supports policymakers’ efforts to design effective regulatory frameworks.     

A comparative study of the adoption and implementation of target costing in the UK, Australia and New Zealand

Most of the studies on target costing (TC) only provide insight into the adoption and perceived benefits of TC, and do not address the levels of implementation of the technique. These studies also assume that TC is only relevant to manufacturing firms and therefore do not investigate the adoption of this technique in service firms, and consequently exclude service firms from their surveys and analysis. Furthermore, most studies do not examine factors influencing the adoption of TC systems. Contributing to these gaps in the literature, this paper reports the results of a survey among CIMA-qualified management accountants working in manufacturing and service firms in the UK, Australia and New Zealand on the adoption and implementation of TC. The study examines the importance of attributes of TC (namely relative advantage, compatibility, ease of use, result demonstrability, trialability) for decision makers to adopt and implement such cost and management accounting innovation. The survey indicates that TC is equally prevalent among manufacturing and service firms while in terms of the levels of implementation there is a significant difference between manufacturing and service firms. The study shows that there is a growing interest in the examination of all cost-reducing strategies at the planning stage and adoption of value engineering to incorporate customer requirements rather than focusing on the adoption of cost-cutting strategies at the production stage.     

Technology Adoption in Online Social Networks

With the advances of information technology, online social networks are becoming increasingly important venues for technology adoption. However, although the dynamics of technology adoption in real world social networks have been well documented, technology adoption in online social networks remains relatively under‐explored. This study identifies the differences between online and offline social networks and proposes a framework to investigate the dynamics of technology adoption in online social networks. To illustrate the proposed research framework, this study employs behavior‐link panel data obtained from an open source software (OSS) development network to examine how online social networks affect the adoption of Subversion, the latest OSS version control technology. Based on social network theory, co‐membership is used to construct online social networks within the OSS development network. Methodologically, this study takes advantage of the panel dataset and addresses the issues of simultaneity and individual heterogeneity that frequently confound the relationship between network structure and adoption decision, and as a result it demonstrates a more compelling relationship between social networks and technology adoption. The results of this study reveal that social networks are major conduits for technology adoption in an online social network in terms of imitation, leadership, lock‐in, similarity, recency, and team size effects. In online social networks, one's decision to adopt a new technology is strongly influenced by the actions of the connected others. Project leaders have a stronger influence over other members in technology adoption decision making, even in informal virtual teams where traditional governance structures do not apply. Older projects exhibit stronger inertia and thus lack innovativeness. Similarities among projects facilitate faster adoption, and the effect of leadership attenuates in the networks with increasing project dissimilarity. Recent adoptions of technology within the networks, rather than more distant ones, have a stronger impact on subsequent adoption, implying the salience of memory over usage confidence, and increased size of a project team accelerates the rate of adoption. These results help in understanding the dynamics of technology adoption in online social networks, and provide useful guidelines for firms to promote technology and product innovation.     

E-purchasing: profiles of adopters and nonadopters

As advancement in electronic commerce (EC) continues to revolutionize today's business practices, it became apparent that EC has become an integral part of the business landscape. EC generated a high level of interest because of its ability to expedite the purchase ordering process, simplify purchase payment, expand supplier bases, reduce paperwork, and eliminate order errors. Realizing such managerial benefits, a growing number of purchasing organizations are exploring the possibility of utilizing e-purchasing systems. This paper identifies contextual variables (e.g., organizational readiness, user characteristics, and information technology [IT] infrastructure) that influence the successful adoption of EC for business-to-business (B2B) purchasing by examining the differences in survey responses between adopters and nonadopters of e-purchasing.     

Countervailing effects of value and risk perceptions in manufacturers' adoption of expensive,discontinuous innovations

Both value and risk perceptions are germane to industrial firms' adoption decisions involving discontinuous innovations. Yet a surprisingly limited number of studies examine how these two considerations jointly influence the innovation adoption phenomenon. We intend to fill this gap by studying the countervailing and context-dependent effects of value and risk perceptions on industrial firms' intention to adopt discontinuous innovations.A conceptual model is proposed and tested with data collected from influential decision makers in pharmaceutical manufacturers on their decision to adopt the modular facility technology, a costly, discontinuous facility construction innovation. The findings confirm the offsetting roles of value and risk in affecting adoption and reveal the moderating effects of external market pressure in that both value and risk assume greater roles in affecting adoption as external market pressure increases. Furthermore, our results show a positive effect of external market pressure on value, and negative effects of external market pressure and internal adoption readiness on risk.Our study contributes to the innovation diffusion and industrial marketing literatures by: (1) studying the joint and countervailing effects of value and risk perceptions on adoption decisions by manufacturers, (2) considering the contextual influences on industrial adopters' value and risk perceptions, and (3) gathering data from influential decision makers for a major capital investment decision.     

Commercializing Technological Innovation: Learning from Failures in High‐Tech Markets*

Commercialization is known to be a critical stage of the technological innovation process, mainly because of the high risks and costs that it entails. Despite this, many scholars consider it to be often the least well managed phase of the entire innovation process, and there is ample empirical evidence corroborating this belief. In high‐tech markets, the difficulties encountered by firms in commercializing technological innovation are exacerbated by the volatility, interconnectedness, and proliferation of new technologies that characterize such markets. This is clearly evinced by the abundance of new high‐tech products that fail on the market chiefly due to poor commercialization. Yet there is no clear understanding, in management theory and practice, of how commercialization decisions influence the market failure of new high‐tech products. Drawing on research in innovation management, diffusion of innovation, and marketing, this article shows how commercialization decisions can influence consumer acceptance of a new high‐tech product in two major ways: (i) by affecting the extent to which the players in the innovation's adoption network support the new product; (ii) by affecting the post‐purchase attitude early adopters develop toward the innovation, and hence the type of word‐of‐mouth (positive or negative) they disseminate among later adopters. Lack of support from the adoption network is found to be an especially critical cause of failure for systemic innovations, while a negative post‐purchase attitude of early adopters is a more significant determinant of market failure for radical innovations. There follows a historical analysis of eight innovations launched on consumer high‐tech markets (Apple Newton, IBM PC‐Junior, Tom Tom GO, Sony Walkman, 3DO Interactive Multiplayer, Sony MiniDisc, Palm Pilot, and Nintendo NES), which illustrates how commercialization decisions (i.e., timing, targeting and positioning, inter‐firm relationships, product configuration, distribution, advertising, and pricing) can determine lack of support from the innovation's adoption network and a negative post‐purchase attitude of early adopters. The results of this work provide useful insights for improving the commercialization decisions of product and marketing managers operating in high‐technology markets, helping them avoid errors that are precursors of market failure. It is also hoped the article will inform further research aimed at identifying, theoretically and empirically, other possible causes of poor customer acceptance in high‐tech markets.     

Fast and expensive: the diffusion of a disappointing innovation

Firms seek to imitate innovations that yield competitive advantage, but imitation can presage disappointment when the innovation value is below expectations. Empirical research has only rarely examined the diffusion of such disappointing innovations, and it is not known whether negative information from past adopters will halt the diffusion process. Likewise, the effect of heterogeneity in the innovation value on its spread has not been systematically investigated. Here, a unique dataset on a disappointing innovation is used to examine how adoption decisions are imitated, but actual use and subsequent abandonment can yield information that reduces the likelihood that others will adopt. The findings show imitation of the adoptions of other firms, but avoidance of the innovation once these firms start using the innovation or abandon it. Copyright © 2011 John Wiley & Sons, Ltd.     

To app or not to app: A business-to-business seller's decision

Although business-to-business (B2B) selling firms increasingly realize the benefits of adoption and usage of B2B mobile applications (apps), few studies examine this topic. Building on the technology organization environment and the technology acceptance model adoption frameworks, this research provides an integrative framework to identify and investigate the key determinants of B2B mobile apps for sellers that have not implemented B2B mobile apps for their buyers to use in their decision making. The results from 360 marketing executives at B2B selling firms indicate that perceived usefulness, top management support, and competitive pressure positively influence the decision to adopt B2B mobile apps in the near future. In addition, relative advantage and perceived ease of use indirectly affect adoption of B2B mobile apps through perceived usefulness. The research findings provide several theoretical and managerial implications related to B2B mobile apps adoption.     

Segmental new-product diffusion of residential broadband services

Aggregate models of innovation diffusion do not capitalise on valuable consumer adoption dynamics that may be useful to policy makers and market planners. The non-diffusion choice literature shows quite clearly that these dynamics may indeed be very important factors in the diffusion process. The authors present a segmental broadband diffusion model that is estimated from consumer survey data that measure the effect that household income has on its propensity to adopt this technological product. The results suggest that early broadband adopters are mostly made up from wealthy households and only as time progresses do less well off households adopt. The findings presented in this paper will be important to market planners and policy makers requiring a relatively simple technique that forecasts segmental innovation diffusion.     

The Impact of Word of Mouth Sources on the Perceived Usefulness of an Innovation

This paper examines the role of three indirect mechanisms linking word‐of‐mouth communication with one of the most important innovation attributes influencing the adoption decision: perceived usefulness. The authors hypothesize that word‐of‐mouth (WOM) communication impacts perceived usefulness by influencing potential adopter perceptions of the credibility of innovation information, the size of the adopter population, and the availability of complementary products. To test these hypotheses, the authors analyze the survey responses of over 550 potential adopters of e‐readers and smartphones. In both product samples, the perceived credibility of WOM information is positively related with perceived usefulness, which is positively related with purchase intent. Consistent with theoretical arguments regarding the importance of access to expert information sources, findings indicate that, relative to personal WOM, written and virtual WOM have stronger relationships with consumer perceptions of the credibility of innovation information. In addition, in both samples, perceived usefulness is positively related with the perceived availability of complementary products, which is positively related with both personal and written word‐of‐mouth. Finally, perceived usefulness has (1) a direct relationship with the perceived size of the local adopter population in the e‐reader sample and (2) an indirect relationship with the same variable that is mediated by the perceived availability of complementary products in both samples. In turn, the perceived size of the local adopter population is positively related with exposure to personal word‐of‐mouth.     

“To Own or Not to Own?” A Study on the Determinants and Consequences of Alternative Intellectual Property Rights Arrangements in Crowdsourcing for Innovation Contests

Firms are increasingly engaging in crowdsourcing for innovation to access new knowledge beyond their boundaries; however, scholars are no closer to understanding what guides seeker firms in deciding the level at which to acquire rights from solvers and the effect that this decision has on the performance of crowdsourcing contests. Integrating property rights theory and the problem‐solving perspective while leveraging exploratory interviews and observations, we build a theoretical framework to examine how specific attributes of the technical problem broadcast by firms affect the seekers’ choice between alternative intellectual property rights (IPR) arrangements that call for acquiring or licensing‐in IPR from external solvers (i.e., with high and low degrees of ownership, respectively). Each technical problem differs in the knowledge required to be solved as well as in the stage of development of the innovation process and seeker firms pay great attention to such characteristics when deciding about the IPR arrangement they choose for their contests. In addition, we analyze how this choice between acquiring and licensing‐in IPR, in turn, influences the performance of the contest. We empirically test our hypotheses analyzing a unique dataset of 729 challenges broadcast on the InnoCentive platform from 2010 to 2016. Our results indicate that challenges related to technical problems in later stages of the innovation process are positively related to the seekers’ preference toward IPR arrangements with a high level of ownership, while technical problems involving a higher number of knowledge domains are not. Moreover, we found that IPR arrangements with a high level of ownership negatively affect solvers’ participation and that IPR arrangement play a mediating role between the attributes of the technical problem and the solvers’ self‐selection process. Our paper contributes to the open innovation and crowdsourcing literature and provides practical implications for both managers and contest organizers.     

The Estimation of a Cusp Model to Describe the Adoption of Word for Windows*

This article revisits earlier work in this journal by Paul Herbig (1991) that proposed a catastrophe model of industrial product adoption under certain conditions. Catastrophe models are useful for modeling situations where organizations can exhibit both smooth and abrupt adoption behavior. It extends Herbig's work by focusing on organizations' adoption of new products when network externalities are an important part of the decision process, and it presents an empirical estimation of the model. Network externalities occur when firms do not want to adopt a new innovation or product unless other firms do. The reason is that they do not want to end up with an innovation that ends up not being a standard of some sort. Mistakes of this nature can be costly as the firm must invest twice and loses time relative to competitors who have not made such a mistake. However, when such externalities exist, for example with regard to technological adoptions, then normal diffusion gives way to sudden discontinuous shifts as all firms seemingly act together an move to a new technology. Since, technology is an area where the authors expect network externalities to exist, that is the focus of this article. The specific application is developed from two sets of panel data on the organizational adoptions of Microsoft's (MS) Word for Windows software by organizations that previously were using either Word for DOS or Word for Macintosh (Mac). The theoretical framework for the analysis is based on work in the economics literature on network externalities. However, the organization and new product development catastrophe model comes primarily from Herbig (1991) . The article focuses on an area of organizational adoption where relatively little empirical research has been done, namely organizational adoption “for use.” Longitudinal data provided by Techtel Corporation is used to develop the estimations. Results of the empirical analysis are consistent with the theoretical framework suggested in Herbig's article and in those found in economics and catastrophe theory literatures. This lends clear support to the idea that organizations will adopt a bandwagon‐type behavior when network externalities are present. It further suggests that in such markets, the standard S‐shaped diffusion curve is not an appropriate model for examining organizational behavior. From a managerial perspective, it means that buyers and sellers may face nonstandard diffusion curves. Instead of S‐shaped curves, the actual curves have a break or rift where sales end, and there is a sudden shift to a new product that is relatively high very early on. Clearly, for new product development (NPD), it suggest that organizations' “for‐use” purchases may be similar to regular consumers and may change rapidly from one product to another almost instantly, as in the case of the switch from vinyl records to compact discs (CDs). From an old product seller's viewpoint, the market is here today and gone tomorrow, while for the new seller it is a sudden deluge of sales requests. To put it in more everyday terms, sudden changes in adoption behavior are a September 11‐type experience for the market. It is the day the world changes.     

The role of Guanxi in green supply chain management in Asia's emerging economies: A conceptual framework

In recent decades, rapid industrial modernization and economic growth have brought substantial environmental problems such as air pollution, hazardous waste, and water pollution for the Asian emerging economies (AEE), in particular China, Taiwan, India, Malaysia, Indonesia, Thailand, and South Korea. These countries have started to adopt green supply chain management (GSCM) as a strategy to reduce the environmental impact. There are anecdotal evidences that the adoption of GSCM in this region is partly influenced by Guanxi – a cultural norm, which plays a significant role in relationship governance within supply chain activities among the AEE. Based on a systematic literature review, we develop a conceptual framework that characterizes the drivers and barriers for the adoption of GSCM practices, incorporating Guanxi as a moderator in the manufacturing sector of the AEE. The conceptual framework addresses the roles of two types of Guanxi in the adoption of GSCM: the relational Guanxi at individual level based on social exchange theory and the aggregated Guanxi at firm level derived from social capital theory. This recognition of Guanxi at two separate decision levels help companies better manage their relationships while they green their supply chains. Directions for future research and managerial implications are discussed accordingly.     

Product innovativeness from the firm's perspective: Its dimensions and their relation with project selection and performance

There has recently been tremendous interest in product innovativeness. However, it seems that we need a better understanding of exactly what product innovativeness means. This article presents a conceptual framework to clarify its meaning. The framework first distinguishes customer and firm perspectives on product innovativeness. From the customer's perspective, innovation attributes, adoption risks, and levels of change in established behavior patterns are regarded as forms of product newness. Within the firm's perspective, environmental familiarity and project-firm fit, and technological and marketing aspects are proposed as dimensions of product innovativeness.
Next, the article offers a tentative empirical test of the proposed dimensions of product innovativeness from the firm's perspective. A well-known dataset of 262 industrial new product projects is used to: I) clarify the product innovativeness construct and examine its underlying dimensions, 2) examine the relation of product innovativeness with the decision to pursue or kill the project, and 3) examine the relationship between product innovativeness and product performance. Five dimensions of product innovativeness are found which have distinct relations with the Go/No Go decision and product performance: market familiarity, technological familiarity, marketing fit, technological fit, and new marketing activities. Most strikingly, measures of fit are related to product performance, whereas measures of familiarity are not.
The article concludes that researchers need to be careful about which definitions and measures of product innovativeness they employ, because depending on their choice they may arrive at different findings. New product practitioners are encouraged to evaluate new product opportunities primarily in terms of their fit with their firm's resources and skills rather than the extent to which they are "close to home".     

Incorporating Network Externalities into the Technology Acceptance Model*

Research on network externalities has identified a number of product categories in which the market performance of an innovation (e.g., unit sales and revenues) is an increasing function of that innovation's installed base and the availability of complementary products. Innovation scholars have attributed these findings to the positive impact of network externality variables on consumer perceptions of innovation attributes. This paper provides the first empirical examination of these perceptual linkages by extending the Technology Acceptance Model to include consumer perceptions of network externality variables. The authors hypothesize that, when direct and indirect network externalities exist, consumer purchase intentions and consumer perceptions of an innovation's usefulness and ease of use will positively reflect perceptions of installed base size and the availability of complementary products. To test this reasoning, the authors developed new measures of consumer perceptions of network externality variables. These measures were incorporated into a survey that explored the attitudes in Japan of potential adopters toward digital music (DM) players at an early stage in the product life cycle. Findings reveal a direct positive relationship between ease of use and the perceived availability of digital music. The authors also find positive and significant relationships between both purchase intention and perceived usefulness and (1) the perceived size of the DM player installed base and (2) the perceived availability of digital music. An application of the Baron‐Kenny test for mediating variables reveals that (1) ease of use partially mediates the relationship between the perceived availability of digital music and perceived usefulness and (2) perceived usefulness partially mediates the relationship between the perceived availability of digital music and purchase intention. The research has important implications for future research on new product adoption and for the management of innovations that involve network externalities. The conceptual model provides a framework for testing alternative explanations of observed variations in the impact of network externalities within and across product categories. The empirical analysis provides guidance for managers who wish to manage the impact of network externalities on adoption. In addition to stimulating the size of the installed base and the variety of complementary products, executives must also manage consumer awareness of network externality variables and consumer understanding of the relationship between those variables and innovation attributes. Finally, traditional adoption models link consumer adoption decisions to perceptions of innovation attributes. The findings provided here imply that predictive accuracy of these models can be improved by including consumer perceptions of network externality variables.     

Lifestyle orientations and the adoption of Internet-related technologies in Taiwan

Using Rogers' diffusion of innovation model as the theoretical framework, this study examined the relationships between lifestyle orientations and the adoption of nine Internet-related technologies in Taiwan including IPTV, digital cable, emails, Internet instant messages, Facebook, scanners, notebooks, printers and personal computers. A telephone survey was conducted to collect data, and 506 valid questionnaires were obtained, representing a response rate of 58.6%. The results showed that lifestyle orientations were a powerful predictor for the adoption of information-oriented and entertainment-oriented technologies, but not for the adoption of interpersonally oriented technologies. Furthermore, this study found that while demographics were the most powerful variable that distinguished the adopters from the non-adopters, mass media use was not.