Abstract: Firm-Level Technology Adoption Processes—A Qualitative Investigation

The firm’s ability to develop innovative products has been shown to be an important factor in developing strategic advantage (Webster 1969; Hult and Ketchen 2001); however, not all firms have the resources or capabilities to innovate new products. Thus, to remain competitive, firms must adopt innovations from sources external to the firm—often in the form of technological innovations. To gain competitive advantage, a firm may adopt “transformational” technology—technology that enables a fundamental change to the firm’s business model, a new value proposition or a new way to manufacture, distribute, and/or market an offering (Aaker 2011). However, not all technology adoption decisions are successful, which places firm performance and customer relationships at risk. Abrahamson (1991) argues that innovation research focuses too much on what drives adoption decisions and too little on what drives firms to adopt inferior innovations and reject superior ones. The tendency of researchers to “ignore the study of ignorance about innovations” (Rogers 1995; p. 100) has resulted in a significant gap in the adoption of innovation research. Using diffusion of innovation theory as a lens, this research examines how an adopting entity’s perceptions of an innovation’s relative advantage, complexity, and compatibility influence the decision to adopt the new technology (Rogers 1962; O’Neal et al. 1973; Davis 1989). Because unrealistic expectations for the performance of a technology can negatively influence attitudes and perceptions of adoption success (Oliver 1980), it is important to understand how the firm’s perceptions of a technology are informed.