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respond and adopt, while those farther away will take more time to respond (Rogers 1983; Strang and Soule 1998:272). This theory about the roles of networks in diffusion, while widely applicable, requires modification in this particular case, among others. Attewell (1992) argues that in this case, knowledge of the existence of computers and their business applications far preceded their eventual adoption. The main barrier to adoption was not awareness, but technical knowledge: knowledge of how to effectively integrate computing into the workplace. Thus, the most relevant networks to the diffusion of business computing were those networks that transmitted the technical knowledge required to utilize the innovation, not those that simply transmitted awareness of the idea behind the innovation.
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organization. "Authority innovation decisions", on the other hand, need only the consensus of a few individuals with large amounts of power within the organization. In the case of organizations adopting business computing, authority decisions were largely impossible. As J.D. Eveland and L. Tornatzky (1990) explain, when dealing with advanced technical systems such as those involved with business computing, “decisions are often many (and reversed), and technologies are often too big and complex to be grasped by a single person's cognitive power – or usually, to be acquired or deployed within the discretionary authority of any single organizational participant." Therefore, a much broader consensus within an organization was required to reach the
440:
technology (Attewell 1992:3-6). The "knowledge barrier" could be reduced or partially circumvented, however, by the formation of new institutions. The new institutions that formed during this time period – such as service bureaus, consultants, and companies creating simplifications of the technology – lowered the knowledge barrier and allow for more rapid diffusion of the ideas and technology behind business computing. This explains the phenomenon in which, at first, many organizations obtained business computing as an out-sourced service. However, after these service institutions effectively lowered the barrier to adoption, many organizations became capable of bringing business computing in-house (Attewell 1992:7-8).
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practices of the group members. Third, the simplicity of the innovation: usually, the simpler the innovation, the more quickly the concept is adopted. Fourth, the "trialability" of an innovation; that is, whether it can be tested without commitment for a period of time. An innovation that has an available trial period provides less uncertainty to the group member who will be trying it. Lastly, whether there are observable results with use of the innovation. The more positive and visible results, the higher the likelihood it gets adopted as a permanent idea for the group.
328:" ideas, and conveying new principles. Change agents are usually business professionals (such as lawyers, consultants, bankers, or politicians) who spread new practices or aid in promoting new ideas. These individuals often introduce business models, legal strategies, or investment techniques that are picked up by several entities within a network and continue to diffuse. Often, such external diffusion leads to conformity of a set of corporate strategies or structures, a phenomenon DiMaggio and Powell called "normative isomorphism".
22:
390:). The interactions that link these individuals are represented by the edges of the network and can be based on the probability or strength of social connections. In the dynamics of such models, each node is assigned a current state, indicating whether or not the individual has adopted the innovation, and model equations are used to describe the evolution of these states over time.
210:" (Robinson). The theory of diffusion of innovations differs from other theories about the processes of change since most changes are improvements, or "reinventions", of a previously existing product or technique. These changes are generally favorably perceived by the members of the group because they usually are more in line with the values and needs of the group.
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number of initial adopters and the structure and properties of the network. Two factors in particular emerged as important to successful spread of the innovation: The number of connections of nodes with their neighbors, and the presence of a high degree of common connections in the network (quantified by the
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Firm size has been shown to have an influence on the rate of diffusion. Strang and Soule (1998) have shown that large, technical, and specialized organizations with informal cultures tend to innovate much faster than other firms. Smaller and more rigid firms attempt to mimic these "early adopters" in
258:
The key part of the five stages is the decision; this is the main reason why diffusion exists. The decision to either adopt or reject the idea is vitally important. Those responsible for evaluating innovations either determine that the new concept is likely to provide future success, and adopt it, or
222:
Sociological diffusion occurs when a social group or organization develops an innovation: a new idea or behavior. Diffusion, in the context of corporations and businesses, is a way for an idea to be fleshed out. The diffusion of innovations provides insights into the process of social change: one can
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in the way many organizations operated; specifically, the rise of computers and related technologies saw organizations adopt these innovations to help run their business (Attewell 1992:1). Thus, the diffusion of business computing through organizations during this time period provides an informative
309:
is the spread of information and innovations within a network, flowing within a single adopting population – a given industry or geographical network. Internal diffusion dynamics require that innovative and early adopter firms introduce new ideas into a network, which are then picked
197:
The speed at which an innovation spreads through a mass of people depends on how favorably an idea is perceived by the audience. Innovations that are ill matched with existing techniques are not as well accepted and diffused through the group. Social structures are naturally designed in a hierarchy;
262:
An important aspect of the diffusion and decision process is communication. As an idea further develops and spreads, it flows and moves through an organization by communication. Communication is a necessary condition for an idea to take hold. The innovation depends on a communication network within
139:
Diffusion emerged as a subfield in early 20th century rural sociology. Bryce Ryan and Neal Gross were influential in laying the initial groundwork on diffusion in sociology. Early studies explained how corn farmers adopted new variants of corn through social diffusion processes rather than economic
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have been developed to investigate the balance between the social aspects of diffusion and perceived intrinsic benefit to the individuals. When the effect of each individual node was analyzed along with its influence over the entire network, the expected level of adoption was seen to depend on the
349:
Clustering', the existence of a group of tightly connected agents, is a frequent concept in network theory. It includes, for example, similar firms locating themselves in close proximity to each other (Silicon Valley for technology firms; New York for banking services). Such clustering and close
430:
The roles of communication networks, as described by traditional theories of diffusion, have been to facilitate information flow about a new innovation and thus remove one of the major barriers to adoption. In this model, those closest to the initial champions of a new innovation are quicker to
358:
has a connection to two or more clusters. These agents are integral in connecting groups, as they provide communication between large clusters. Firms with weak ties can be isolated firms, firms with business in two or more spaces, or those which are external change agents. Firms with weak ties
213:
There are five important qualities that factor into the success or failure of innovations. First, the relative advantage; that is, whether the new innovation surpasses similar existing ideas in terms of satisfaction and convenience. Second, the compatibility of the new idea with the needs and
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New institutions, in particular those which acted as educators or consultants, also played an important role in the diffusion of business computing. In order to adapt to evolving trends in business computing, organizations first needed to gain the technical knowledge necessary to operate the
393:
In threshold models the uptake of technologies is determined by the balance of two factors: the (perceived) usefulness (sometimes called utility) of the innovation to the individual as well as barriers to adoption, such as cost. The multiple parameters that influence decisions to adopt, both
270:
Studies of the diffusion of innovation have shown that new ideas must fit with already established system in order for changes not only to occur, but also to occur easily. (Pinard) An innovation faced with structural or ideological barriers cannot diffuse. On the other hand, if a new idea or
448:
Rogers (1983) notes two important ways in which innovations are adopted by organizations: collective innovation decisions, and authority innovation decisions. "Collective innovation decisions" are best defined as a decision that occurs as the result of a broad consensus for change within an
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throughout social groups and organizations. The topic has seen rapid growth since the 1990s, reflecting curiosity about the process of social change and "fueled by interest in institutional arguments and in network and dynamic analysis." The theory uses a case study of the growth of
314:, and ironically may lead to clustering of firm structure and practices. Additionally, firms are often forced to adopt new ideas as they are constantly competing with other firms; that is, firms want to seem modernized and seek legitimacy in implementing innovative practices.
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determine that it is likely to be a failure, and continue to move forward in search of other ideas. It is counterproductive for an organization to invest time, energy, and in most cases money, into a poorly developed or bad idea.
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in order to ensure that new products, ideas, and techniques are well adopted by the social group. The concept of diffusion is of particular interest in the marketing field, as this concept affects the success or failure of new
527:
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Mathematical models can be used to study the spread of technological innovations among individuals connected to each other by a network of peer-to-peer influences, such as in a physical community or neighborhood.
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observe the qualities that make an innovation successfully spread and the importance of communication and networks. According to Rogers, a new idea is diffused through a decision-making process with five steps:
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The study of the diffusion of innovations has led to advancements in awareness of three important aspects of social change: the qualities of an innovation which lead to successful diffusion, the effect of
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An agent's environmental and cultural makeup influence the decision to adopt an idea diffusing through a network. Some of the major characteristics of firms that influence their decision to innovate are
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up by the majority of firms and laggard firms. DiMaggio and Powell (1983) argue that firms search for the best ideas and practices and mimic new ideas that prove to work. This phenomenon is known as
862:
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refers to the introduction of ideas to a network from outside actors: firms or other agents on the edge of the network. Outside actors include the mass media and "change agents."
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proximity increases the diffusion rate of ideas for firms within a cluster, as other firms are more likely to adopt an idea if another firm has adopted it within its cluster.
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model. In such a model, nodes represent agents (e.g. companies or organizations) and ties represent a connection between two entities (e.g. a company-client relationship or
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of technical knowledge and authority necessary to adapt to business computing. This provided an opportunity for collective innovation decisions within the organization.
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McCullen, N. J.; Rucklidge, A. M.; Bale, C. S. E.; Foxon, T. J.; Gale, W. F. (2013). "Multiparameter Models of
Innovation Diffusion on Complex Networks".
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267:, Rosen points out the importance of communication networks in the spread and development of an idea within an organizational system. (Dobson)
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A firm's interaction with other players, along with its environment and organizational culture, are key in the social theory of diffusion.
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248:- The individual adds the innovation into the system. At this stage, he or she also begins to determine the innovation's usefulness.
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295:). Diffusion occurs when a novel idea, product, or process is implemented by an agent and permeates through these ties to others.
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thus, different ideas follow different routes or courses in the hierarchy, depending on the type and source of an innovation.
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can amplify trends and movements that occur in the marketplace, introducing new innovations to network members, exposing "
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Strang, David; Sarah Soule (1998). "Diffusion in
Organizations and Social Movements: From Hybrid Corn to Poison Pills".
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To illustrate how different diffusion mechanisms can have varying effects in individual cases, consider the example of
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In a study by Surry and
Farquhar, researchers explain that the theory of diffusion is used in occupations ranging from
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innovation has few obstacles and acknowledges places where change is logical, movement to it will occur. (Freeman)
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or products. Understanding this theory helps marketers influence the way the public will perceive each innovation.
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through certain channels. He identifies four elements that influence how and how quickly a new idea spreads:
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Attewell, Paul (1992). "Technology
Diffusion and Organizational Learning: The Case of Business Computing".
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The effects of networks and institutional environment on adoption of innovations can be explained using a
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Mishra, Schreiber, Stanton, Tarjan, Nina, Robert, Isabelle, Robert (2007). "Clustering Social
Networks".
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case study through which to examine different mechanisms of diffusion and their respective roles.
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492:"Diffusion in Organizations and Social Movements: From Hybrid Corn to Poison Pills"
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individual and socially motivated, can be represented by such mathematical models.
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Diffusion of information and ideas has been categorized into two modes:
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the organization in order to take root. In
Emanuel Rosen's book
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where an innovative idea or concept is spread by members of the
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defines sociological diffusion of innovation as a process in a
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Case study: Diffusion of business computing in organizations
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889:"A Simple Model of Global Cascades on Random Networks"
46:. Unsourced material may be challenged and removed.
616:Jeanty, Jacquelyn. "Social Theory of Diffusion".
599:Journal of Instructional Science and Technology
595:"Diffusion Theory and Instructional Technology"
332:Environmental and cultural factors of diffusion
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653:"A Summary of Diffusion of Innovations"
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1075:. Lexington, MA: Lexington Books.
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813:"The Strength of Weak Ties"
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959:SIAM J. Appl. Dyn. Syst
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582:. New York: Free Press.
917:10.1073/pnas.082090499
532:Social Science History
403:clustering coefficient
367:Mathematical treatment
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289:social network theory
218:Why diffusion happens
168:The innovation itself
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908:2002PNAS...99.5766W
811:Granovetter, Mark.
544:10.1017/ssh.2021.46
312:mimetic isomorphism
283:The use of networks
265:The Anatomy of Buzz
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415:business computing
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490:(1998).
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