Why is diffusion of innovation and technology important?
When I think of diffusion of innovation and technology, I think of evolution or how a product, idea or theory goes from a thought in someone’s mind to an actual working process and then through time develops into better products to meet society’s needs and wants. Many times certain societies have a special trait, characteristic or ability that enables them to be great at certain types of technology or maybe they produce certain products that this society desires. What makes it important is the idea that other societies can benefit from new innovation and technology, other societies can then take those ideas and adapt them to their own needs, making them better all-around or for the good of all. This can even lead to, as White and Bruton mention in the text, new products or innovations from old ideas. For instance, computers have gone from huge boxes taking up space in a large room to now being so tiny they can fit in the palm of your hand. This is because the idea of computers has been diffused into society in such a way that it has adapted to the needs and desires of society. The modern day computer, while the basic idea is similar is not the same technology as the very first computers. What factors affect diffusion into the global marketplace?
According to Zhu, Kraemer and Xu, there are several factors that affect diffusion into the global marketplace. Those factors are competition, firms being large as opposed to smaller and economic environments. Competition has both positive and negative effects on diffusion. It can be great for the initial startup as well as embracing an idea, but not so great for those companies who want to buy into an idea without properly knowing how to use existing products (Zhu, Kraemer and Xu, 2006). Large firms can take advantage of resources, but have to deal with organizational sluggishness later (Zhu, Kraemer and Xu, 2006). And finally, economic environments...
References: White, M. A., & Bruton, G. D. (2007). The management of technology and innovation: A strategic approach. Mason, OH: Thomson South-Western.
Zhu, K., Kraemer, K. L., & Xu, S. (2006).The process of innovation assimilation by firms in different countries: A technology diffusion perspective on e-business. Management Science, 52(10). Retrieved September 14, 2007, from Business Source Premier database.
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