The impact of accreditation on advanced-nascent technology adoption: evidence from the U.S. healthcare industry

Abstract

ABSTRACT Although adopting advanced-nascent technologies is critical to achieving competitive advantage, it is also a highly risky strategic decision, as these technologies are not yet fully institutionalized. This paper suggests that firms can reduce institutional uncertainty through high-status macro-organization membership (i.e., accreditation). More precisely, I propose that, since accredited organizations allow members to deviate from the technological norm in the market without being penalized, organizations in a high-status ascribed group (viz. accredited members) are more likely to adopt advanced technologies, even if they are at a nascent stage. I examine this argument by analyzing a unique dataset from the U.S. healthcare industry and find that accredited hospitals are more likely to adopt advanced-nascent technology.