Adoption dynamics of increasing-return technologies in systemic contexts

Saku Mäkinen, Juho Kanniainen, Ozgur Dedehayir

    Research output: Contribution to journalArticleScientificpeer-review

    5 Citations (Scopus)
    42 Downloads (Pure)


    Many systemic, complex technologies have been suggested to exhibit increasing returns to adoption, whereby the initial increase in adoption leads to increasing experience with the technology, which drives technological improvements and use, subsequently leading to further adoption. In addition, in the systemic context, mimetic behavior may lend support to increasing returns as technology adoption is witnessed among other agents in the systemic context. Finally, inter‐dependencies in the systemic context also sensitize the adoption behavior to fundamental changes in technology provisioning, and this may lend support for the increasing returns type of dynamics in adoption. Our empirical study examines the dynamics of organizational technology adoption when technology is provisioned by organizations in another sub‐system in a systemic context. We hypothesize that innovation, imitation, and technological change effects are present in creating increasing returns in the systemic context. Our empirical setting considers 24 technologies represented by 2282 data points in the computer industry. Our results provide support for our prediction that imitation effects are present in creating increasing returns to adoption. We further discuss the managerial and research implications of our results.
    Translated title of the contributionAdoption dynamics of increasing-return technologies in systemic contexts
    Original languageEnglish
    Pages (from-to)1140-1146
    Number of pages7
    JournalTechnological Forecasting and Social Change
    Issue number6
    Publication statusPublished - 2013
    Publication typeA1 Journal article-refereed

    Publication forum classification

    • Publication forum level 3


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