Organizational and Individual Innovation Decisions in an Interorganizational System: Social Influence and Decision-Making Authority

Abstract

Abstract This study examines the processes of complex innovation adoption in an interorganizational system. It distinguishes the innovation adoption mechanisms of organizational-decision-makers (ODMs), who make authority adoption decisions on behalf of an organization, from individual-decision-makers (IDMs), who make optional innovation decisions in their own work practice. Drawing on the Theory of Reasoned Action and Social Information Processing Theory, we propose and test a theoretical model of interorganizational social influence. We surveyed government health-care workers, whose advice networks mostly span organizational boundaries, across 1,849 state health agencies in Bihar, India. The collective attitudes of coworkers and advice network members influence health-care workers’ attitudes and perceptions of social norms toward four types of innovations. However, individuals’ decision-making authority moderates these relationships; advisors’ attitudes have a greater influence on ODMs, while perceptions of social norms only influence IDMs. Notably, heterogeneity of advisors’ and coworkers’ attitudes negatively influence IDMs’ evaluations of innovations but not ODMs’.