How do technology convergence and expansibility affect information technology diffusion? Evidence from the internet of things technology in China

Abstract

Information technology diffusion (ITD) is essential for promoting the sustainable development of technologies and helping technology owners gain a competitive advantage. The web-based development of technology and the digital transformation needs of multidisciplinary markets simultaneously drive the increasing convergence and expansibility of information technology (IT). However, whether these two technological characteristics can contribute to the diffusion of early-stage IT and how they influence the further diffusion of IT that has already diffused on a large scale are yet to be thoroughly investigated. We argue that the impact of technology convergence on ITD is heterogeneous when distinguishing between low- and high-ITD scenarios, as is technology expansibility. Our quantile regression estimates use a dataset about Internet of Things (IoT) patents authorized by the Chinese Patent Office from 2009 to 2019. The results show that increased technology convergence benefits ITD in high-ITD scenarios but does not affect ITD in low-ITD scenarios. Technology expansibility negatively impacts ITD in high-ITD scenarios and positively impacts ITD in low-ITD scenarios. This study broadens the theoretical paradigm of “technological characteristics and ITD” from the domain perspective. It inspires information technology owners to formulate sustainable strategies related to ITD according to technology convergence and expansibility.