Learning From Supply-Side Agents: The Impact Of Technology Solution Providers' Experiential Diversity On Clients' Innovation Adoption

Abstract

We examine how firms use the experiential learning of certain supply-side agents— technology solution providers—to overcome technological, organizational, and market-related knowledge hurdles to adopting innovations. Studying the electronic banking innovations of 4,293 credit unions that had relationships with 55 such providers during 2000–04, we found that their technical experiential diversity positively influences client innovation adoption, although benefits taper off at high levels of diversity. A provider's organizational experiential diversity, however, exhibits a U-shaped relationship with client innovation adoption. Also, the conditioning effect of a client firm's marketing intensity on the diversity-innovation link varies with the type of technology solution provider experience.