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Diffusion of innovations theory

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Contents [hide]
1 Diffusion of innovations
2 Acronym
3 Alternate name(s)
4 Main dependent construct(s)/factor(s)
5 Main independent construct(s)/factor(s)
6 Concise description of theory
7 Diagram/schematic of theory
8 Originating author(s)
9 Seminal articles
10 Originating area
11 Level of analysis
12 IS articles that use the theory
13 Links from this theory to other theories
14 External links
15 Original Contributor(s)

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Diffusion of innovations
Acronym
DOI

Alternate name(s)
Innovation Diffusion Theory (IDT)

Main dependent construct(s)/factor(s)

Implementation Success or TechnologyAdoption

Main independent construct(s)/factor(s)

Compatibility of Technology, Complexity of Technology, Relative Advantage (Perceived Need for Technology)

Concise description of theory

DOI theory sees innovations as being communicated through certain channels over time and within a particular social system (Rogers, 1995).
Individuals are seen as possessing different degrees of willingness to adopt innovations and thus it is generally observed that the portion of
the population adopting an innovation is approximately normally distributed over time (Rogers, 1995). Breaking this normal distribution into
segments leads to the segregation of individuals into the following five categories of individual innovativeness (from earliest to latest
adopters): innovators, early adopters, early majority, late majority, laggards (Rogers, 1995). Members of each category typically possess certain
distinguishing characteristics as shown below:
innovators - venturesome, educated, multiple info sources
early adopters - social leaders, popular, educated
early majority - deliberate, many informal social contacts
late majority - skeptical, traditional, lower socio-economic status
laggards - neighbours and friends are main info sources, fear of debt
When the adoption curve is converted to a cumulative percent curve a characteristic S curve (as shown in the first figure below) is generated
that represents the rate of adoption of the innovation within the population (Rogers, 1995). The rate of adoption of innovations is impacted by
five factors: relative advantage, compatibility, trialability, observability, and complexity (Rogers, 1995). The first four factors are generally
positively correlated with rate of adoption while the last factor, complexity, is generally negatively correlated with rate of adoption (Rogers, 1995).
The actual rate of adoption is a function of both the rate at which an innovation takes off and its rate of later growth. Low cost innovations may
have a rapid take-off while innovations whose value increases with widespread adoption (network effects) may have faster late stage growth.
Innovation adoption rates can, however, be impacted by other phenomena. For instance, the adaptation of technology to individual needs can
change the nature of the innovation over time. In addition, a new innovation can impact the adoption rate of an existing innovation and path
dependence may lock potentially inferior technologies in place.
Sources: http://en.wikipedia.org/wiki/Diffusion_of_innovation
Rogers, Everett M. Diffusion of Innovations. 4thed. New York: Free Press,1995
Diffusion of Innovation Theory in IS
Moore and Benbasat (1991), working in an IS context, expanded upon the five factors impacting the adoption of innovations presented by
Rogers, generating eight factors (voluntariness, relative advantage, compatibility, image, ease of use, result demonstrability, visibility, and
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trialability) that impact the adoption of IT. Scales used to operationalize these factors were also validated in the study.
Since the early applications of DOI to IS research the theory has been applied and adapted in numerous ways. Research has, however,
consistently found that technical compatibility, technical complexity, and relative advantage (perceived need) are important antecedents to the
adoption of innovations (Bradford and Florin, 2003; Crum et. al., 1996) leading to the generalized model presented below (see second figure
below).

Diagram/schematic of theory

IS diffusion variance model:

Originating author(s)
Lazarsfeld et. al. (1949); Rogers (1962); Rogers and Shoemaker (1971); Rogers (1995)

Seminal articles
Lazarsfeld, P.F., Berelson, B. & Gaudet, H. (1949). The peoples choice: How the voter makes up his mind in a presidential campaign. New
York: Columbia University Press.
Rogers, Everett M. (1962). Diffusion of Innovations. The Free Press. New York.
Rogers, Everett M & Shoemaker, Floyd F (1971). Communication of Innovations: ACross-Cultural Approach (2nd ed.). New York: The Free
Press.
Rogers, Everett M. Diffusion of Innovations. 4thed. New York: Free Press, 1995.
Rogers, Everett M. Diffusion of Innovations. 5thed. New York: Free Press, 2003.

Originating area
Anthropology/Sociology/Education/Communication/Marketing and Management/Geography/Economics

Level of analysis
Group, Firm, Industry, Society

IS articles that use the theory

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Agarwal, R., & Prasad, J. (1998). Aconceptual and operational definition of personal innovativeness in the domain of information technology.
Information Systems Research, 9(2), 204-215.
Agarwal, R., & Prasad, J. (1997). The role of innovation characteristics and perceived voluntariness in the acceptance of information
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Armstrong, J. S., & Yokum, J. T. (2001). Potential diffusion of expert systems in forecasting. Technological Forecasting and Social Change,
67(1), 93-103.
Baskerville, R L & Pries-Heje, J (2001). Amultiple-theory analysis of a diffusion of information technology case. Information Systems Journal,
11(3), 181-212.
Baskerville, R., & Pries-Heje, J. (2003). Diversity in modeling diffusion of information technology. Journal of Technology Transfer, 28(3-4), 251264.
Beatty, R. C., Shim, J. P., & Jones, M. C. (2001). Factors influencing corporate web site adoption: Atime-based assessment. Information &
Management, 38(6), 337-354.
Bharati, P. and Chaudhury, A. (2006), Current Status of TechnologyAdoption: Micro, Small and Medium Manufacturing Firms in Boston,
Communications of the ACM, Vol. 49, No. 10, pp. 88-93.
Blake, B. F., Neuendorf, K. A., & Valdiserri, C. M. (2005). Tailoring new websites to appeal to those most likely to shop online. Technovation,
25(10), 1205-1214.
Bradford, M., & Florin, J. (2003). Examining the role of innovation diffusion factors on the implementation success of enterprise resource
planning systems. International Journal of Accounting Information Systems, 4(3), 205-225.
Brancheau, J. C., & Wetherbe, J. C. (1990). The adoption of spreadsheet software: Testing innovation diffusion theory in the context of end-user
computing. Information Systems Research, 1(2), 115-143.
Carter Jr., F. J., Jambulingam, T., Gupta, V. K., & Melone, N. (2001). Technological innovations: Aframework for communicating diffusion effects.
Information & Management, 38(5), 277-287.
Chen, L., Gillenson, M. L., & Sherrell, D. L. (2004). Consumer acceptance of virtual stores: Atheoretical model and critical success factors for
virtual stores. Database for Advances in Information Systems, 35(2), 8-31.
Chen, L., Gillenson, M. L., & Sherrell, D. L. (2002). Enticing online consumers: An extended technology acceptance perspective. Information &
Management, 39(8), 705-719.
Cheng, J. M. S., Kao, L. L. Y., & Lin, J. Y. (2004). An investigation of the diffusion of online games in taiwan: An application of roger's diffusion of
innovation theory. Journal of American Academy of Business, Cambridge, 5(1/2), 439-445.
Cheung, C. M. K., Chan, G. W. W., & Limayem, M. (2005). Acritical review of online consumer behavior: Empirical research. Journal of Electronic
Commerce in Organizations, 3(4), 1-19.
Chircu, A. M., & Kauffman, R. J. (2000). Limits to value in electronic commerce-related IT investments. Journal of Management Information
Systems, 17(2), 59-80.
Cooper, R. B., & Zmud, R. W. (1990). Information technology implementation research: Atechnological diffusion approach. Management
Science, 36(2), 123-139.
Crum, M. R., Premkumar, G., & Ramamurthy, K. (1996). An assessment of motor carrier adoption, use, and satisfaction with EDI.
Transportation Journal, 35(4), 44-57.
Dos Santos, B. L., & Peffers, K. (1998). Competitor and vendor influence on the adoption of innovative applications in electronic commerce.
Information & Management, 34(3), 175-184.
Eastin, M. S. (2002). Diffusion of e-commerce: An analysis of the adoption of four e-commerce activities. Telematics and Informatics, 19(3),
251-267.
Eder, L. B., & Igbaria, M. (2001). Determinants of intranet diffusion and infusion. Omega, 29(3), 233-242.
Fichman, R. G. (2004). Going beyond the dominant paradigm for information technology innovation research: Emerging concepts and
methods. Journal of the Association for Information Systems, 5(8), 314-355.
Fichman, R. G. (2001). The role of aggregation in the measurement of it-related organizational innovation. MIS Quarterly, 25(4), 427-455.
Fichman, R. G., & Kemerer, C. F. (1999). The illusory diffusion of innovation: An examination of assimilation gaps. Information Systems
Research, 10(3), 255.
Fichman, R. G., & Kemerer, C. F. (1997). The assimilation of software process innovations: An organizational learning perspective.
Management Science, 43(10), 1345-1363.
Forman, C. (2005). The corporate digital divide: Determinants of internet adoption. Management Science, 51(4), 641.
Geroski, P. A. (2000). Models of technology diffusion. Research Policy, 29(4-5), 603-625.
Goslar, M. D. (1987). Marketing and the adoption of microcomputers: An application of diffusion theory. Journal of the Academy of Marketing
Science, 15(2), 42-48.
Grantham, A., & Tsekouras, G. (2005). Diffusing wireless applications in a mobile world. Technology in Society, 27(1), 85-104.
Grover, V. (1993). An empirically derived model for the adoption of customer-based interorganizational systems. Decision Sciences, 24(3), 603640.

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Grover, V., Fiedler, K., & Teng, J. (1997). Empirical evidence on swanson's tri-core model of information systems innovation. Information
Systems Research, 8(3), 273-287.
Grover, V., & Goslar, M. D. (1993). The initiation, adoption, and implementation of telecommunications technologies in U.S. organizations.
Journal of Management Information Systems, 10(1), 141-163.
Hardgrave, B. C., Davis, F. D., & Riemenschneider, C. K. (2003). Investigating determinants of software developers' intentions to follow
methodologies. Journal of Management Information Systems, 20(1), 123-152.
Hsu, C. L., Lu, H. P. and Hsu, H. H. (2007). Adoption of the mobile internet: an empirical study of multimedia message service (MMS), OMEGA:
International Journal of Management Science, 35, 715-726.
Hu, Q., Saunders, C., & Gebelt, M. (1997). Research report: Diffusion of information systems outsourcing: Areevaluation of influence sources.
Information Systems Research, 8(3), 288-301.
Hung, S., Ku, C., & Chang, C. (2003). Critical factors of WAP services adoption: An empirical study. Electronic Commerce Research and
Applications, 2(1), 42-60.
Iacovou, C. L., Benbasat, I., & Dexter, A. S. (1995). Electronic data interchange and small organizations: Adoption and impact of technology. MIS
Quarterly, 19(4), 465-485.
Karahanna, E., Straub, D. W., & Chervany, N. L. (1999). Information technology adoption across time: Across-sectional comparison of preadoption and post-adoption beliefs. MIS Quarterly, 23(2), 183-213.
Kautz, K., & Pries-Heje, J. (Eds.). (1996). Diffusion and adoption of information technology. London: Chapman and Hall.
Kocas, C. (2002). Evolution of prices in electronic markets under diffusion of price-comparison shopping. Journal of Management Information
Systems, 19(3), 99-119.
Lai, V. S. (1997). Critical factors of ISDN implementation: An exploratory study. Information & Management, 33(2), 87-97.
Lee, M. K. O. (1998). Internet-based financial EDI: Towards a theory of its organizational adoption. Computer Networks and ISDN Systems,
30(16-18), 1579-1588.
Leonard-Barton, D., & Deschamps, I. (1988). Managerial influence in the implementation of new technology. Management Science, 34(10),
1252-1265.
Li, S. S. (2003). Electronic newspaper and its adopters: Examining the factors influencing the adoption of electronic newspapers in taiwan.
Telematics and Informatics, 20(1), 35-49.
Liao, S., Shao, Y. P., Wang, H., & Chen, A. (1999). The adoption of virtual banking: An empirical study. International Journal of Information
Management, 19(1), 63-74.
Martins, C. B. M. J., Steil, A. V., & Todesco, J. L. (2004). Factors influencing the adoption of the internet as a teaching tool at foreign language
schools. Computers and Education, 42(4), 353-374.
Moore, G. C. (1987). "End user computing and ofice automation: Adiffusion of innovations perspective. INFOR, 25(3), 214-235.
Moore, G. C., & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology
innovation. Information Systems Research, 2(3), 192-222.
Mustonen-Ollila, E., & Lyytinen, K. (2003). Why Organizations Adopt Information System Process Innovations: ALongitudinal Study using
Diffusion of Innovation Theory, Information Systems Journal, 13(3), 275-297.
Nilakanta, S., & Scamell, R. W. (1990). The effect of information sources and communication channels on the diffusion of innovation in a data
base development environment. Management Science, 36(1), 24-40.
O'Callaghan, R., Kaufmann, P. J., & Konsynski, B. R. (1992). Adoption correlates and share effects of electronic data interchange systems in
marketing channels. Journal of Marketing, 56(2), 45-56.
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Parthasarathy, M., & Bhattacherjee, A. (1998). Understanding post-adoption behavior in the context of online services. Information Systems
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australian construction organizations: Amicro analysis. Construction Innovation, 5(3), 135-157.
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Ramamurthy, K., & Premkumar, G. (1995). Determinants and outcomes of electronic data interchange diffusion. IEEE Transactions on

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Engineering Management, 42(4), 332-351.

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Links from this theory to other theories

Technology acceptance model, Theory of planned behavior, Theory of reasoned action, Unified theory of acceptance and use of technology,
Evolutionary theory, Technology-organization-environment framework

External links
http://en.wikipedia.org/wiki/Diffusion_of_innovations , Wikipedia provides a brief synopsis of DOI theory
http://www.anu.edu.au/people/Roger.Clarke/SOS/InnDiff.html , Roger Clarke presents a primer on DOI theory as a preparation to reading the
relevant IS literature and a resource list including a number of references at http://www.anu.edu.au/people/Roger.Clarke/SOS/InnDiffISW.html
http://www.sigadit.org/ , The AIS Special Interest Group on Adoption and Diffusion of Information Technology
http://www.isi.salford.ac.uk/tm/Diffusion.enl , Tom McMaster provides an EndNote library of DOI
http://www.context.org/ICLIB/IC28/AtKisson.htm , Arole playing game called The Innovation Diffusion Game that is intended to demonstrate
some basic principles of cultural change and DOI theory
http://disc-nt.cba.uh.edu/chin/digit98/panel2.pdf#search='innovation%20diffusion%20theory' , A1998 paper byAgarwal et. al. outlining
extensions to DOI theory
http://www.personal.psu.edu/staff/c/a/cam240/litreview.htm , Anumber of additional web links on DOI

Original Contributor(s)
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Brent Furneaux
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