Adoption Of Product Innovations Research Articles

The dynamic links between product and process innovations and productivity for Colombian manufacturing

Purpose This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm’s joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys. Design/methodology/approach This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of Olley and Pakes (1996) and Levinsohn and Petrin (2003), proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models. Findings The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit significant, albeit delayed, advantages. Finally, the analysis confirms the existence of dynamic interconnections between the adoption of process and product innovations. Originality/value The contribution of this work to the literature is manifold. First, the authors thoroughly investigate the relationship between the implementation of process and product innovations and productivity for Colombian manufacturing explicitly recognising that firms’ decisions of adopting product and process innovations are very likely interrelated. Therefore, the authors start exploring the self-selection and the returns to innovation hypotheses accounting for the fact that firms might implement process innovations only, product innovations only and both process and product innovations. In the analysis of the returns of innovation, the fact that firms may choose among a menu of three innovation strategies implies the use of evaluation methods for multi-value treatments. Second, the authors study the dynamic inter-linkages between the decisions to implement process and/or product innovations, that remains under studied, at least for emerging economies. Third, the estimation of TFP is performed using an endogenous Markov process, where past firms’ innovations are endogenized.

Information asymmetry in the innovation adoption decision of tourism and hospitality SMEs in emerging markets: A mixed-method analysis

Investment decisions, particularly innovation adoption decisions, can sustain long-term viability of small and medium enterprises (SMEs). However, information asymmetry could limit the ability of SME management to make informed innovation adoption decisions. Even though information asymmetry is a multidimensional construct, prior literature has only focused on financial information asymmetry in such decisions. Therefore, the current study fills the research gap by conducting two separate studies: one analyzes World Bank Group data from 1250 observations in 11 emerging markets, and the other interviews eight SME owners and managers. The findings of the mixed-method studies suggest that financial, business regulation, and court information asymmetry decrease the likelihood of SMEs' product innovation adoption. The study contributes to a more comprehensive understanding of information asymmetry in SMEs’ decision-making rooted in agency theory. Moreover, its methodological contribution lies in measuring information asymmetry with micro-level data.

Born innovator? How founder birth order influences product innovation generation and adoption in entrepreneurial firms

Individuals’ birth order may be a fundamental, engrained human early-life and family-domain experience that shapes their behaviors in adulthood. However, limited knowledge is available about the influence of birth order on individual innovation preferences. By integrating sibling rivalry theory and social identity theory and analyzing 186 high-technology entrepreneurial firms, we find that founder birth order is positively associated with product innovation generation (later-born founders pursue more innovation generation than do earlier-born founders) but is negatively associated with product innovation adoption (earlier-born founders generate more innovation adoption than do later-born founders). Further, both the age spacing between a founder and closest-born sibling and founder social identity moderate the relationships. Thus, our findings advance understanding in the literature on birth order and on entrepreneurial innovation.

Determinants of product innovation in food and agribusiness small and medium enterprises: evidence from enterprise survey data of India

This paper analyzes the nature and determinants of product innovation for food and agribusiness firms in India. The study is based on the World Bank’s Enterprise Survey and the India Innovation Follow-up Survey from 2014. These surveys included 294 Indian food and agribusiness firms operating in different regions of the country. Simple statistical tools, such as chi-square test and logistic regression, are used for analyzing the raw data. It is evident from the analysis that there is a significant difference in the adoption of product innovations across enterprise sizes. Product innovation is more prominent in large enterprises than small and medium scale enterprises (SMEs). Results of regression analysis indicate that product innovation in SMEs is more likely to be influenced by a variety of internal, collaborative, and external factors. The findings of the study suggest that SMEs should diversify their product innovations to include new inputs, improved product features, and enhanced technologies to strengthen their place in the market. This research is valuable because there is limited evidence on the nature and determinants of product innovation in food and agribusiness SMEs of emerging economies like India.

The impact of mortality anxiety on attitude toward product innovation

Threatening environmental stimuli, such as terror attacks, armed conflicts and death imagery in advertising, have been shown to positively affect consumer attitudes and behaviors toward products. This article calls into question the generalizability of this effect to innovative products by showing that mortality anxiety, i.e., individuals' fear of their own mortality, leads to product innovation resistance. Drawing from the literature on innovation adoption and mortality anxiety, four experimental studies provide evidence that while mortality anxiety has a positive impact on the evaluation of noninnovative products, it negatively affects the evaluation of innovative products. When faced with mortality anxiety, consumers are more likely to experience state nostalgia, a temporary backward-looking mindset, in contrast with the forward-looking mode necessary to favor product innovation adoption. This process is confirmed by the positive impact of mortality anxiety on attitude toward innovative products that trigger feelings of nostalgia, or retro-innovation.

Do firm-level barriers to construction product innovation adoption vary according to position in the supply chain?

Purpose The purpose of this study is to examine product innovation as a means of addressing infrastructure shortages in developed economies and to improve the sustainability of infrastructure. The obstacles to product innovation in the road industry are compared between different types of participants in the supply chain to provide guidelines for interventions to improve innovation rates. Design/methodology/approach This exploratory study uses descriptive data from a large scale survey of the Australian road industry. The three top-rated product innovation obstacles for the following four types of participants are examined: contractors, consultants, suppliers and clients. Findings The four groups were found to disagree about the relative importance of the obstacles. Contractors and suppliers ranked “restrictive price-only tender assessment” used by clients as their number one obstacle, while consultants thought there was too much emphasis by the clients on direct costs compared with whole-of-life costs. On the other hand, clients felt suppliers do not do enough thorough testing prior to proposing a new product and disagreed with suppliers about who should carry the risk of new product failure. Research limitations/implications The conceptual framework was found to yield novel insights with significant policy implications. The construction-specific contextual determinants that were integrated by the authors into a broad innovation diffusion process proved useful in categorising road product innovation obstacles across the four surveyed supply chain groups – without overlap or omission. The new framework also proved useful in ordering the key obstacles across groups for interpretation and discussion. In disaggregating product obstacles according to groups, these contextual determinants were proven to be mutually exclusive and to represent important focal points in promoting the uptake of product innovation in construction. Although the current study has usefully provided quantitative data concerning construction innovation obstacles, there are limitations due to its reliance on descriptive statistics. Future work by the authors is proposed to analyse the relationships between innovation obstacles and supply chain partners using inferential statistics to further develop and validate these early findings. The current study is an interim step in this work and an important contribution in identifying and addressing firm-level barriers seen to be constraining construction product innovation. Practical implications Results suggest there is a need for government clients to carefully consider the differing perspectives across the supply chain when developing strategies to encourage the adoption of mutually-beneficial innovative products on their construction projects. Inclusive focus groups examining the drivers, configuration and benefits of collaborative procurement systems are recommended to reduce innovation obstacles. Social implications Society relies on urban infrastructure for daily living and the current study contributes to stretching infrastructure investment dollars and reducing the environmental impact of infrastructure provision. Originality/value No previous study has compared the perception of product innovation obstacles across different road industry supply chain partners. This is a significant gap, as differences in opinions across the supply chain need to be understood to develop the shared expectations and the improved relationships required to improve product innovation rates. Product innovation is important because it has been shown to improve efficiency (potentially addressing the road investment gap) and reduce deleterious environmental impacts.

The Unintended Consequences of Biotechnology Innovation Adoption

The notion that technological innovation can benefit the economic and social well-being of a society is well accepted, but less examined is the potential that the adoption of new technologies may inadvertently lead to adverse effects in society. In this study, we consider the potential effects of adoption of agricultural biotechnology innovation in the context of the U.S. agrarian economy. We also consider the intervening impact of social innovation in the agrarian sector – in the form of certified organic operations — in this framework. Using panel data techniques on a representative sample of U.S. states, we show that increasing the adoption of agricultural biotechnology innovation in a state (i.e. the proportion of planted seeds that are genetically engineered seeds) is associated with increasing food insecurity and increasing obesity rates in a state. Furthermore, the findings indicate that certified organic operations have a positive influence on economic and social well-being. These findings offer initial insights into unforeseen demand side effects of product innovation adoption, while indicating promising avenues for future research and policy.

Understanding major dimensions and determinants that help in diffusion & adoption of product innovation: using AHP approach

In this global world, diffusion & adoption of new product innovation have become intricate and involves multifaceted process, as consumers demand a broad range of choices. So, this has generated enthusiasm among researchers and business practitioners while studying and implementing diffusion & adoption of product innovation.Even though diffusion & adoption is known as one of the most important processes of an innovation management, but the literature available in this area is highly fragmented. Therefore, in this paper, we attempt to develop a framework for diffusion & adoption, which helps in learning and understanding its dimensions and determinants from different perspectives. In this study, AHP has been used to analyse the relative importance and provide a ranking to the dimensions and determinants of product innovation. The findings of this study can help the management, product developers and market professionals in strategic planning and in setting their priorities when there is resource constraint. This study also helps in deciding and prioritising the dimensions and determinants that should be fuse during product development phase.

Gamified Information Presentation and Consumer Adoption of Product Innovations

This research examines the effect of gamified information presentation—conveying information about a product innovation in the form of a game—on consumer adoption of that innovation. The key hypothesis is that gamified information presentation promotes consumer innovation adoption and that it does so through two parallel psychological processes—by increasing consumer playfulness, which stimulates curiosity about the innovation, and by enhancing the perceived vividness of information presentation, which increases the perceived advantage of the innovation relative to (less innovative) competing products. Evidence from seven studies, including two field experiments, supports this theorizing. The results also show that for gamified information presentation to increase innovation adoption, it is essential that the information is integrated into the game. These findings advance the understanding of the psychological forces that govern how consumers respond to receiving product information in the form of games, and they have important practical implications for how firms might use gamified information presentation to promote sales of new products.

Persistence in generating and adopting product innovations

Purpose The purpose of this paper is to test the existence of true persistence in the generation and adoption of product innovations in the context of a developing country. Design/methodology/approach A dynamic probit model with random effects is used to test true persistence relying on a panel data set constructed from three waves of the Colombian innovation survey (Encuesta de Desarrollo e Innvovación Tecnológica) covering the time span from 2003 to 2008. Findings This paper empirically shows the existence of true innovation persistence for two of the three types of product innovation studied: the adoption of product innovation that is new to the firm; and the adoption of product innovation that is new to the national market. However, the study could not confirm true persistence in the generation of product innovation. Originality/value To the best of our knowledge, this is the first study that systematically tests innovation persistence differentiating between the adoption of innovations that are new to the firm and innovation that is new to the national market. It is also the first study in this research area that uses a dynamic probit model with random effects according to the original specification by Wooldridge (2005).

Factors affecting consumer adoption of product innovation: a review of literature

Factors affecting consumer adoption of product innovation: a review of literature

Critical decisions in new product launch: pricing and advertising strategies on consumer adoption of green product innovation

Before launching a new product, product managers must determine an appropriate marketing strategy. Pricing and advertising strategies are major tools that firms employ to persuade consumers to accept product innovation. Scholars have discussed the significance of pricing and advertising strategies for consumer decision behaviour. According to range theory, people use the range of recalled price experiences to set a lower and upper bound of price expectations, and the attractiveness of a market price is a function of its relative location within this range. Previous research indicates that the pioneer brand's initial price defines consumers' initial reference price, regardless of whether the pioneer brand employs a skimming or penetration strategy. Therefore, this study examined the effects that pricing strategies (i.e. market-skimming pricing vs. market-penetration pricing) and advertising strategies (functional advertisement vs. emotional advertisement) have on consumer-perceived quality, perceived risk, perceived value, and adoption in the context of green product innovation. We proposed a conceptual model comprising 8 hypotheses and adopted a 2 × 2 experimental research design, using a structured questionnaire to collect field data for testing the proposed hypotheses. The results showed that a market-penetration pricing strategy reduces consumer financial risk and increases consumer-perceived value, ultimately increases consumer purchase intention of product innovation. A functional advertisement seems to be more efficient than an emotional advertisement in influencing consumer adoption of product innovation. The results provide theoretical insights into product innovation and management implications for new product providers.

The determinant of consumer adoption of product innovation: a multi-component measure and its antecedents

Product innovation can substantially improve business performance; however, user unwillingness to adopt new products often decreases performance gains. According to Reasoned Action Theory, consumer attitude determines the consumer purchase intention of a new product; however, the literature does not contain a well-established scale to measure consumer attitude towards product innovation, especially at the product category level. This study develops a category-specific measure of consumer attitude towards product innovation and investigates the relationship between consumer attitude and its antecedent factors. The procedure proposed by Churchill (1979) is used to create and refine a multi-item measurement scale. Study results reveal that consumer attitude towards product innovation contains three components of quality, value, and attractiveness. The value and attractiveness of product innovation seem more important than quality to influence consumer purchase intention; in addition, consumer change seeking has a positive effect on consumer attitude towards product innovation. Consumer product knowledge has a positive influence on value and attractiveness components; however, the influence of consumer product knowledge on the quality component is insignificant. The results provide a theoretical insight into product innovation and management implications for new product providers.

A social network analysis of customer-level revenue distribution

Social network analysis has been a topic of regular interest in the marketing discipline. Previous studies have largely focused on similarities in product/brand choice decisions within the same social network, often in the context of product innovation adoption. Not much is known, however, about the importance of social network effects once customers have been acquired. Using the customer base of a telecommunications company, our study analyzes network autocorrelation in the distribution of customer-level revenue within a social network. Our results indicate a significant and substantial degree of positive network autocorrelation in customer-level revenue. High (low) revenue customers therefore tend to be primarily related to other high (low) revenue clients. Furthermore, we show that approximating communicative proximity by spatial proximity leads to a substantial underestimation of these effects.

Building design innovation

PurposeA perceptible gap has been observed in the literature concerning the adoption of product innovations into construction projects by designers (architects and engineers). This is seen specifically in the scant investigation into this group as a relevant source of construction innovation. It is also seen in the failure of current literature to reflect this group's interpretation of innovation linkages. The result is a gap in knowledge and a difficulty in correlating construction innovation models to the work of designers. The purpose of this paper is to seek to address this gap by identifying and classifying recent examples of innovation using an accepted construction innovation model.Design/methodology/approachThe primary objective was to expand this accepted construction innovation model's interpretation of innovation linkages and identify those linkages that directly relate to the work of designers and address aspects of building form rather than merely aspects of cost and process efficiencies.FindingsThe results revealed that the interpretation of building linkages by designers were much more diverse than those as perceived by the manufacturers and suppliers of the products. New linkages included aspects of building orientation, facade design, services integration, floor layouts, lighting design, fire safety and sustainability. In some cases, the designer's interpretation of the product's linkages had substantial implications for the marketing strategy of the products, and even the potential to change the classification grouping of the innovation.Originality/valueThis paper forms part of a wider piece of research into the management of innovation for construction professionals. The timely research is necessary to motivate design professionals in the adoption of new product innovations into their building designs.

Trends in maxillofacial cone-beam computed tomography usage

Cone-beam computed tomography (CBCT) is making inroads into dental practice worldwide, both in terms of adding the third dimension to diagnosis, and also in terms of enabling image-guided treatment strategies. This article reports trends in the early referral pattern of patients to a CBCT facility in the United States. With institutional review board approval, a retrospective study was made of sequential CBCT radiographic reports made by a specialist oral and maxillofacial radiology service from May 2004 through January 2006 (n = 329). Demographic and referral data were extracted from the reports. Descriptive statistics identified referral patterns, trends, and indications for CBCT. Comparisons were made with the Rogers' Product Innovation Adoption curve. The mean age of referred patients was 45 ± 21 years, and there was a predominance of women (62%). Oral and maxillofacial surgeons (51%) and periodontology specialists (17%) made most patient referrals. The listed reasons for CBCT referrals were dental implant planning (40%), suspected surgical pathology (24%), and temporomandibular joint analysis (16%). Other uses included planning extraction of impacted teeth and orthodontic assessment. Over the period of the study, the numbers of pathology diagnosis cases remained relatively constant, while adoption of CBCT for dental implant planning followed closely the first three stages of the Rogers' Product Innovation Adoption curve. Alongside this increased CBCT adoption for dental implant planning, there was an associated increased demand for use of DICOM image sets for laser modeling and provision of surgical guides. Diagnosis will probably remain a constant source of referral for CBCT examination by oral and maxillofacial radiologists. Nevertheless, more specialized applications such as laser-guided model fabrication and image-guided surgery are expanding indications for CBCT referrals by dentists and also expanding the horizons of clinical dental practice.

Social structure and consumption: on the diffusion of consumer good innovation

This paper presents a simple evolutionary model to study the diffusion patterns of product innovations for consumer goods. Following a Veblenian theme, we interpret consumption as a social activity constrained by social norms and class structure. Societies that allow for more behavioral variety will experience faster adoption of new consumer goods. We also find that the speed of diffusion as well as the saturation levels reached depend greatly on the structure of a society. Combining these two effects, we conclude that a social structure displaying behavioral variety and an even class structure fares better than any other social set-up in terms of the speed of adoption of product innovations and product variety.

The Dynamics of the Adoption of Product and Process Innovations in Organizations

While many researchers have fruitfully explored the patterns of adoption of product and process innovations across industries, few have studied these same patterns within individual firms. In this study we address this issue, examining the dynamics that govern the adoption of product and process innovations at the firm level over time. We examine questions such as: Which type of innovation is more readily adopted? Does the adoption of one type of innovation lead or lag the adoption of the other type? And, would the pattern of adoption of innovation types have an effect on organizational performance? Using data on the innovations introduced between 1982 and 1993 by a sample of 101 commercial banks in the United States, we find that: (1) product innovations are adopted at a greater rate and speed than process innovations; (2) a product–process pattern of adoption is more likely than a process–product pattern; (3) the adoption of product innovations is positively associated with the adoption of process innovations; and (4) high‐performance banks adopt product and process innovations more evenly than low‐performance banks.