Diffusion of Innovation

The Diffusion and Adoption of Innovations

A Quick Summary of ‘The Diffusion of Innovations’ by Everett Rogers

or

‘Really, all you need to know about innovation diffusion and adoption was written over 50 years ago

(and updated a few times since then)’

Dr. David J. Walczyk

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Sections: 1. Overview of technological diffusion 2. Stages in the innovation-decision making process 3. Attributes of innovations and their rates of adoption 4. Adopter categories 5. Putting it all together: the innovation process is an organization

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1. Overview of technological diffusion

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A process by which: 1. any innovation 2. is diffused through certain channels and then adopted 3. over time 4. among the members of a social system (for instance a

culture, a subculture, an organization)

- What is an innovation?- Examples?

What is technological diffusion?

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The elements of technological diffusion: 1. the innovation 2. communication channels 3. time 4. the social system (people and the organization)

Lets look at the characteristics of the first element in detail…

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Characteristics of the innovation that relate todiffusion and adoption: 1. Relative advantage 2. Compatibility 3. Complexity 4. Trialability 5. Observability

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Relative advantage: degree to which an innovation is perceivedas better than the technology it supersedes.

Measured in?

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Compatibility: the degree to which an innovation is perceivedas being consistent with existing values, past experiences,

and needs of potential adopters.

How much change is required…

Examples?

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Complexity: The degree to which an innovation is perceivedas being easy or difficult to adopt.

Examples?

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Trialability: the degree to which an innovation may beexperimented with prior to adoption

Why important?

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Observability: the degree to which the benefits (+ and -) arevisible to others

Examples?

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2. Stages in the innovation-decision making process

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Innovation-decision process: an information-seeking andinformation-processing activity in which an individual is

motivated to reduce uncertainty with the advantages anddisadvantages of the innovation

Examples?

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Steps in the innovation-decision process: 1. knowledge 2. persuasion 3. decision 4. implementation 5. confirmation

Lets look at each step in detail…

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Knowledge: when an individual (or other decision-makingunit) is exposed to an innovation’s existence and gains anunderstanding of how it functions

Examples?

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Persuasion: when an individual (or other decision-makingunit) forms a favorable or unfavorable attitude towardsthe innovation

Examples?

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Decision: when an individual (or other decision-makingunit) engages in activities that lead to a choice to adoptor reject the innovation

Examples?

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Implementation: when an individual (or other decision-makingunit) puts a new technology to use

Examples?

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Confirmation: when an individual (or other decision-makingunit) seeks to reinforce or revoke (reject) an innovation-decision

Examples?

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Two types of innovation rejection:Active – consideration and then rejectionPassive – no consideration and no adoption

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A big picture

1. knowledge 2. persuasion 3. decision 4. implementation 5. confirmation

Prior conditions1. Previous practices2. Felt needs/problems3. Innovativeness4. Norms of the social system

Characteristics of theDecision-making unit1. SocieconomicCharacteristics2. Personality variables3. Communicationbehavior

Perceived characteristicsof the innovation1. Relative advantage2. Compatibility3. Complexity4. Trialability5. Observability

1. Adoption

2. Rejection

Continued Adoption

Late Adoption

Discontinuance

Continued Rejection

Communication Channels

The rate of awareness-knowledge foran innovation is more rapid than its rate of adoption

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3. Attributes of innovations and their rates of adoption

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Attributes of innovations: (differences) in perceivedproperties of innovations

Rate of adoption: the speed with which an innovation isadopted by members of a social system.

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Another big picture

Variables Determiningthe Rate of Adoption

Dependent VariableThat is Explained

I. Perceived Attributes of Innovations1. Relative Advantage2. Compatibility3. Complexity4. Trialability5. Observability

II. Types of Innovation-Decision1. Optional2. Collective3. Authority

III. Communication Channels(e.g. mass media or interpersonal)

IV. Nature of the Social System(e.g. its norms, degree of networkInterconnectedness, etc.)

V. Extent of Change Agents’Promotion Efforts

Rate if Adoptionof Innovations

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4. Adopter categories

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Adopters: measured in terms of the behavioral, cognitive, andattitudinal openness to change

Diffusion follows an “S” curve (similar to in the real-world) – anormal distribution

Distribution of adopter categories follows a bell curve

The “S”-curve and the normal distribution curve overlap to give a general/generic view of technological diffusion

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Categories: (3 to left, 2 to right on a bell curve)- innovators 2.5%- early adopters 13.5%- early majority 34%- late majority 34%- laggards 16%

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Innovators – gatekeepers, control flow of new ideas

Early adopters – highest level of opinion leadership. Potential adopters look to them

Early majority – Seldom hold positions of opinion leadership

Late majority – general acceptance is established

Laggards – do not accept change

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Two main types of diffusion systems:Centralized (linear – top-down)

Decentralized (non-linear bottom-up convergence)

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5. Putting it all together: the innovation process is an organization

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The innovation Process in an Organization

I. Initiation II. Implementation

Agenda-setting MatchingRedefining/

RestructuringClarifying Routinizing

#1 #5#4#3#2

Decision

Generalorganizationalproblems thatmay create aperceived needfor innovation.

Fitting aproblem fromtheorganization’sagenda with aninnovation.

The innovationis modified andre-invented tofir theorganization,andorganizationalstructures arealtered.

Therelationshipbetween theorganizationand theinnovation isdefined moreclearly

The innovationbecomes anongoingelement in theorganization’sactivities, andloses it identity.

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Agenda-setting – organizational problem is definedthat creates a need for an innovation. For example a performance gap

Matching – stage at which a problem from the agenda is fit with aninnovation

Redefining/restructuring – reinvention of innovation to organizationsneeds. Organizations structure is modified to fit with the innovation

Clarifying – Flexibility. Social construction or technological determinism

Routinizing – Integration into everyday life

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But its iterative!So…we must analyze consequences

1. Desirable vs. undesirable2. Direct vs. indirect3. Anticipated vs. unanticipated

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Desirable – functional effects on individuals or moreUndesirable – Dysfunctional effects

Direct consequences – changes that occur in immediate responseIndirect - the consequences of consequences

Anticipated – changes that are recognized and intendedUnanticipated – neither recognized nor intended

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End

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