Diffusion Of Product Innovations Research Articles

Innovation Diffusion and Sustainable Development of Deposit Money Banks in South-South Nigeria: The Moderating Role of Entrepreneurial Marketing

Many deposit money banks in Nigeria are utilizing new technologies to innovate their products and services. But amidst these wins are some legitimate concerns about the credibility of the banks, customer trust, banks’ technical competence, capability to adopt innovations and the ability to sustain development. Framed by the diffusion of innovation (DOI) theory, this study explored the relationship between innovation diffusion and sustainable development of deposit money banks in Nigeria and the moderating role of entrepreneurial marketing. A quantitative and cross-sectional survey research design was adopted to consider three (3) hypotheses formulated for the study. Based on a population size of twenty-two (22) deposit money banks in south-south Nigeria, (Nigeria Deposit Insurance Corporation (NDIC), 2022), two (2) respondents; branch managers and marketing managers were drawn randomly from each of the banks for the survey. Therefore, forty-four (44) copies of questionnaire representing the total respondents were suitably designed and administered to obtain primary data. The face validity of the questionnaire was determined by experts comprising of researchers and business practitioners with satisfactory knowledge of the subject matter. The construct and content validity were established from earlier researchers who used it, but with few adjustments. The Cronbach's Alpha Coefficient reliability measure was also applied to determine the internal consistency of items in the questionnaire using Statistical Package for Social Sciences (SPSS). The Pearson moment correlation coefficient was used to determine the degree of relationship between the dimensions of innovation diffusion (product innovation diffusion and process innovation diffusion) and sustainable development. Partial correlation was used to examine moderation of entrepreneurial marketing on the relationship between innovation diffusion and sustainable development. Findings reveal that inn

Managing product innovation diffusion within multinational corporations: leveraging global scale and local responsiveness

How multinational corporations (MNCs) manage knowledge and engage in product innovation diffusion is a central theme of study within international management, and it raises the tension of balancing global integration and local responsiveness, which is the subject of this paper. It uses a qualitative research methodology based on a case study of a MNC from the pharmaceutical industry. We demonstrate the value of a funnel and network structure for diffusion which capitalises upon the global resources and scale within the MNC but which leverages resources within subsidiaries for both reverse and horizontal diffusion. We unpack an innovation diffusion funnel framework and demonstrate how a MNC can effectively utilise the extensive inputs within its ecosystem and transform them into product innovation through a production function process. We contribute by providing an understanding of what is required within the 'transformation box' with its associated implications for how innovation is managed through both formal and informal mechanisms.

Managing product innovation diffusion within multinational corporations: Leveraging global scale and local responsiveness

How multinational corporations (MNCs) manage knowledge and engage in product innovation diffusion is a central theme of study within international management, and it raises the tension of balancing global integration and local responsiveness, which is the subject of this paper. It uses a qualitative research methodology based on a case study of a MNC from the pharmaceutical industry. We demonstrate the value of a funnel and network structure for diffusion which capitalises upon the global resources and scale within the MNC but which leverages resources within subsidiaries for both reverse and horizontal diffusion. We unpack an innovation diffusion funnel framework and demonstrate how a MNC can effectively utilise the extensive inputs within its ecosystem and transform them into product innovation through a production function process. We contribute by providing an understanding of what is required within the 'transformation box' with its associated implications for how innovation is managed through both formal and informal mechanisms.

Revisiting the adoption of innovative products on Australian road infrastructure projects

Construction product innovation can exert a positive influence on project and industry performance. However, guidance is scarce on product innovation diffusion for road infrastructure, in contrast to the large body of literature on the manufacturing industry. A conceptual framework is proposed to understand these processes. Advice is given to managers based on the framework and a large quantitative survey. The framework focuses on contextual characteristics that influence the decision to adopt new-to-industry product innovation, as part of a diffusion process. Case study data are interpreted within the revised framework to test its value and disaggregate the broad obstacles to innovation. A large quantitative survey was then conducted to rank the relative importance of the obstacles constraining the adoption of innovative products on road construction projects. The three most important obstacles were found to be: (1) overemphasis on up-front project costs during tender stage; (2) disagreement over who carries the risk of new product failure; and (3) adversarial contract relations. The results suggest refinements to the conceptual framework to make it a more powerful tool for categorizing and analysing construction innovation obstacles. Results also suggest well-resourced repeat interactions within complementary procurement and regulatory systems will enhance the project teams’ ability to recognize and address innovation obstacles. Further, improved relationships are expected to decrease the need for an overly conservative approach to product approval and prescriptive specifications.

The impact of media on a new product innovation diffusion: a mathematical model

In this paper, we proposed a three compartment model consisting of non-adopter, adopter and frustrated classes of population to discuss the influence of media coverage in spreading and controlling of adopter of a particular product in a region. The model exhibits two equilibria:(i) a adopter-free and (ii) unique interior equilibrium. Stability analysis of the model shows that the adopter-free equilibrium is always locally asymptotically stable if the influence number of adopter $(R_0)$, which depends on parameters of the system is less than unity. Otherwise if $R_0>1$, a unique interior equilibrium exists, it is locally asymptotically stable under some set of conditions. Further analytically and numerically it is observed that the region for backward bifurcation of adopter population increases with the decrease of the valid contact rate before media alert. Finally, numerically experimentations are presented to establish the effect of different media alert rate on adopter and non adopter population.

The Effect of Pre-Existing Standards and Regulations on the Development and Diffusion of Radically New Innovations

The controversy among scientists on whether standards and regulations hamper or stimulate innovation contains too little specificity and provides too few clues for innovation managers to act upon. In this article, we underscore the importance of timing and start by focusing on the effect of pre-existing standards and regulations on the subsequent development and diffusion of product innovations. The effect is assessed in terms of the time interval between the invention of a technological principle and the introduction of the first marketable product (development phase), and the successive time interval up to the start of large-scale industrial production and diffusion (adaptation phase). The authors analyse fifty heterogeneous cases studies of radically new high-tech product innovations from the year 1850 onward. The results indicate that pre-existing standards and regulations significantly shorten the adaptation phase of innovations, an effect not found for the development phase. The shortening effect on the adaptation phase is particularly evident for radically new innovations and innovations that are an integral part of larger technological systems. As the adaptation phase is often a time- and capital-intensive phase for industry, this accelerating effect on the diffusion of innovations is highly relevant for innovation managers and policy makers.

Multi-Firms’ Product Innovation Diffusion Engineering Model in Dynamical Competition

A continuing stream of new product development engineering is essential to ensure long-term companies’ health. The new product development process is the interactive effects among different companies’ engineering and marketing departments. At the final step of the commercialization, successful diffusion of innovations plays a key role in a dynamic competitive environment, needing the corporation of internal and external engineers, marketing people and right diffusion strategy making. The previous research build one-dimensional, two-dimensional, and three-dimensional product diffusion model of competing product in one market, which is conflict with the reality thus limit the application. This paper establishes a general mathematical model on multi-firms’ competition, extending three-dimensional model to multi-dimensional competition systems in a dynamical environment. The model assumes that there are many firms in the product life cycle and they are in an intense competition. Based on this new model, we demonstrate various diffusion strategies for firms of different size. The research result is consistent with Bass’ model. However, this paper set up a bridge by linking the micro-firms level with the macro-industry level in one product innovation engineering diffusion process. The theoretical discussion and managerial implications are provided at the end of the paper.

Radical Fashion and Radical Fashion Innovation

This is a study of the related concepts of radical fashion and radical fashion innovation. Radical fashions are defined here as those that may never enter the market at all, and exist primarily on runway shows, in exhibitions and in publicity; by contrast, radical fashion innovations may be very successful in the marketplace. Radical fashions represent a clear break from the old designs, as opposed to incremental fashions, which are defined as an extension or evolution of the old designs. Using this definition, radical fashion seems to be at odds with the definition of marketable fashion. Nevertheless, while most radical fashions do not enter the market at all and live only in runway shows, exhibitions, and museums, there are many examples of radical fashion innovations successful in the market. Accordingly, a series of questions rise: What is radical fashion? What is radical fashion innovation? What are the differences and similarities between these, and how are they connected? This study seeks to address these questions, using a foundation developed in the radical product innovation literature. Fashion innovations may be in terms form or function, or style, and can be radical (involving the breaking down of old ideas) or incremental (involving the evolution of new ideas from old ideas). We draw from the radical product innovation literature to build two related models. The first is a model of radical fashion and radical fashion innovation that illustrates the components of both concepts. The second is a model of radical fashion innovation diffusion, drawn from the general product innovation diffusion literature, which explores the evolution of and the connections between these two concepts from the beginning (i.e., the radical fashion) to the end (i.e., success in the mass market). Radical fashion may result in designs that are more suitable for the runway, catalogues, or even museum display, than for actual wear. Radical fashion has sometimes been called “new ideas before their marketing phase.” Radical fashion may successfully enter the market, however, and gain wide acceptance among consumers. The transition from radical fashion to radical fashion innovation is not too different from the transition from invention to innovation, which is familiar to researchers in product innovation. Notable in this transition process is the fact that, for many product innovations, what drives the first customers to purchase (the “Visionaries,” to use Moore’s terminology in his “crossing the chasm” model of innovation diffusion) may be very different from what drives the rest of the market (the “Pragmatists.”). If this “chasm” or divide between the two market segments is not recognized, the innovating firm may find that their product stalls during the diffusion process and never effectively reaches the mass market. In the case of fashion products, visionaries (such as celebrities and the fashion press) prime the market and create favorable word of mouth; yet, at the same time, less-radical, wearable designs may be seen on the runway, or may be manufactured for the mass market and sold through department stores, specialty clothing stores, or even discounters. The most successful worldwide designers instinctively know this, and can continuously produce radically innovative fashion which also usually transitions to the mass market successfully. They recognize the need to reach the visionaries successfully to generate sufficient publicity and word of mouth, and also to use product design, promotion, and distribution strategies, as well as appropriate price lining policies, to reach the mass market (the pragmatists) effectively. We conclude with generalized findings and managerial implications for firms in the fashion industry. We attempt to bring the radical innovation literature, and its understanding of the process of radical innovation diffusion in the marketplace, to the expanding discussion of fashion marketing success strategic development.

Complementarity in R&D Cooperation Strategies

This paper assesses the performance effects of simultaneous engagement in R&D cooperation with different partners (competitors, clients, suppliers, and universities and research institutes). We test whether these different types of R&D cooperation are complements in improving productivity. The results suggest that the joint adoption of cooperation strategies could be either beneficial or detrimental to firm performance, depending on firm size and specific strategy combinations. Customer cooperation helps to increase market acceptance and diffusion of product innovations and enhances the impact of competitor and university cooperation. On the other hand, smaller firms also face diseconomies in pursuing multiple R&D cooperation strategies, which may stem from higher costs and complexity of simultaneously managing multiple partnerships with different innovation objectives.

Spillovers in product and process innovation: Evidence from manufacturing firms

This paper proposes a new empirical approach to assess the impact of knowledge spillovers on firms' productivity and demand. I consider a model where process innovation spillovers to other firms raise firms' relative efficiency while technological diffusion of product innovations enhances firms' demand. By modelling knowledge capital as a function of own investment in R&D and spillovers, I can compare the impact of these two complementary sources of knowledge on both the supply and the demand side. The results obtained confirm the findings already highlighted by previous empirical studies that technological externalities affect positively firms' productivity growth. The new finding is that product innovations have a larger technological diffusion than process innovations, both in magnitude and pervasiveness.

Complementarity in R&D Cooperation Strategies

This paper assesses the performance effects of simultaneous engagement in R&D cooperation with different partners (competitors, clients, suppliers, and universities & research institutes). We test whether these different types of R&D cooperation are complements in improving productivity. The results suggest that the joint adoption of cooperation strategies could be either beneficial or detrimental to firm performance, depending on the specific combination of strategies and firm size. Customer cooperation helps to increase market acceptance and diffusion of product innovations and so enhances the impact of competitor and university cooperation. On the other hand, smaller firms in particular also face diseconomies in pursuing multiple R&D cooperation strategies, which may stem from higher costs and complexity of simultaneously managing multiple partnerships with different innovation objectives.

Time Paths in the Diffusion of Product Innovations

This study attempts to measure and analyse the diffusion of product innovations. Diffusion is defined as the spread in the number of producers engaged in manufacturing a new product. Thus, the term refers to the net entry rate in the market for a new product. We trace the history of diffusion for 46 new products and examine the inter-relations among diffusion, other aspects of technological change, price, output, and certain attributes of the relevant markets. To explain the 46 product histories, we construct a theory of the development of industries for new products. Our theory combines elements of traditional, neoclassical models with what Nelson and Winter (I974) have termed an evolutionary theory. A novel feature is that the historical sequence, or time path, of events is viewed as a critical determinant of the ultimate structure of new product markets. Thus the time path of events determines not only the course traversed in reaching the end result but the ultimate market structure itself. The paper is organised in four sections. In Section I we present our theory. In Section II we construct a series of alternative theories of the development of industries for new products based on approaches to be found in received literature. The evidence from the 46 new product histories is examined in Section III. Finally, a brief summary of principal findings follows in Section IV.