The diffusion of a manufacturing innovation: the case of JIT and MRPII

Abstract

This paper examines the factors influencing the adoption, timing of adoption and implementation issues of manufacturing innovations (JIT and MRPII, in particular) in the context of Australian manufacturing industry. The sample study indicated a slow rate of diffusion of such innovations which were already in the public domain in spite of the demonstrated benefit of these innovations both in Australia and overseas. Whilst there was no clear evidence of competitive pressures and firm size affecting the rate of and distribution of adoption, the timing of entry seemed to be important for both the motivation and outcome of adoption. Generally, however, in spite of the major strategic outcome from adoption, few firms seemed to treat the innovations as major strategic decisions.