the relationship between organizational innovation and new product adoption by michael aubry

The Relationship The Relationship between between

Organizational Organizational Innovation and Innovation and New Product New Product

AdoptionAdoptionBy By Michael AubryMichael Aubry

Why is it important to Why is it important to understand this understand this

relationship?relationship?It is important to understand the influence It is important to understand the influence of culture on organizational innovation from of culture on organizational innovation from a global context. It is still difficult to a global context. It is still difficult to understand the overall impact from an understand the overall impact from an individualistic and a collectivistic individualistic and a collectivistic perspective. To make a better perspective. To make a better determination of cultural influence, outside determination of cultural influence, outside representations will be used to create a representations will be used to create a conceptual model that will demonstrate conceptual model that will demonstrate applicability to the field of international applicability to the field of international business. business.

CultureCulture Culture is “an inclusive system of Culture is “an inclusive system of

communications which incorporates biological communications which incorporates biological and technical behavior of human beings with and technical behavior of human beings with their verbal and nonverbal systems of expressive their verbal and nonverbal systems of expressive behavior (Herbig and Dunphy, 1998). behavior (Herbig and Dunphy, 1998).

It will be vital for this comparative study to It will be vital for this comparative study to determine whether or not prescribed determine whether or not prescribed characteristics are accurate, especially “if the characteristics are accurate, especially “if the behavior, ideas, and material apparatus which behavior, ideas, and material apparatus which must accompany the use of innovation can affect must accompany the use of innovation can affect improvements along lines already laid down in improvements along lines already laid down in culture” Herbig and Dunphy (1998), which could culture” Herbig and Dunphy (1998), which could lead to the possibility of the acceptance of lead to the possibility of the acceptance of products or services that are considered products or services that are considered “innovationary”.“innovationary”.

The Four DimensionsThe Four Dimensions

Power Distance Index – power Power Distance Index – power distance represents the acceptance distance represents the acceptance of inequality, and that “it is of inequality, and that “it is endorsed by the followers as much endorsed by the followers as much as the leaders”. This is an inherent as the leaders”. This is an inherent quality for most societies as quality for most societies as inequality amongst different social inequality amongst different social classes is widely accepted classes is widely accepted throughout the world.throughout the world.


Individualism/Collectivism – Individualism/Collectivism – individualistic societies do not individualistic societies do not expect group cohesiveness and expect group cohesiveness and integration. Collectivistic societies integration. Collectivistic societies are strongly integrated and are are strongly integrated and are differentiated by strong familial differentiated by strong familial loyalties.loyalties.


Masculinity/Femininity – this refers Masculinity/Femininity – this refers to gender roles within a society. to gender roles within a society. This could also be considered the This could also be considered the “the extent to which the goals of “the extent to which the goals of men dominate those of women” men dominate those of women” (Harvey, 1997).(Harvey, 1997).


Uncertainty avoidance – this is Uncertainty avoidance – this is considered the ability of a society considered the ability of a society to tolerate risk and uncertainty. to tolerate risk and uncertainty. According to Hofstede (1967-2003) According to Hofstede (1967-2003) “it indicates to what extent a “it indicates to what extent a culture programs its members to culture programs its members to feel either uncomfortable or feel either uncomfortable or comfortable in unstructured comfortable in unstructured situations”.situations”.

Organizational Organizational InnovationInnovation

Organizational innovation is “an Organizational innovation is “an environment, a culture – almost environment, a culture – almost spiritual force – that exists in a spiritual force – that exists in a company” and drives value creation” company” and drives value creation” (Buckler, 1997). This is an essential (Buckler, 1997). This is an essential definition that can be further analyzed definition that can be further analyzed and segmented into several different and segmented into several different components. components.

Organizational culture is a significant Organizational culture is a significant driver of innovation and can vary driver of innovation and can vary differently across cultures. differently across cultures.


According to Goffee and Jones (1998) According to Goffee and Jones (1998) “organizational culture can be segmented into “organizational culture can be segmented into four dimensions based upon two initial four dimensions based upon two initial categories”. These inclusive categories include categories”. These inclusive categories include sociability, which is defined as “friendliness in sociability, which is defined as “friendliness in relationships between people in an organization; relationships between people in an organization; and solidarity, which carries a standard definition and solidarity, which carries a standard definition of “the ability of people to pursue shared goals of “the ability of people to pursue shared goals efficiently and effectively for the larger good of efficiently and effectively for the larger good of the organization without much regard for the the organization without much regard for the impact on individuals and relationships between impact on individuals and relationships between them” (Goffee and Jones, 1998). them” (Goffee and Jones, 1998).


The Four Dimensions of Organizational Culture:The Four Dimensions of Organizational Culture:1.1. Communal - a communal organization is highly Communal - a communal organization is highly

sociable, and “is typical in small organizations”sociable, and “is typical in small organizations”2.2. Fragmented - A fragmented organization is Fragmented - A fragmented organization is

significantly different, due it its’ lack of solidarity, significantly different, due it its’ lack of solidarity, and governance and governance

3.3. Networked - A networked culture consists of an Networked - A networked culture consists of an organization that has “frequent water-cooler organization that has “frequent water-cooler conversations, and colleagues going to lunch conversations, and colleagues going to lunch together and spending time in activities and social together and spending time in activities and social gatherings outside the workplace (Rashid and gatherings outside the workplace (Rashid and Zabid, 2003) Zabid, 2003)

4.4. Mercenary - Mercenary cultures are focused on Mercenary - Mercenary cultures are focused on strategy and effectives processes for “winning in strategy and effectives processes for “winning in the marketplace (Rashid and Zabid, 2003 the marketplace (Rashid and Zabid, 2003


Organizational climate is a significant Organizational climate is a significant function that may also impact a firm’s function that may also impact a firm’s ability to innovate. ability to innovate.

According to Ahmed (1998), “climate According to Ahmed (1998), “climate is defined as “understanding and is defined as “understanding and perceptions of the environment act as perceptions of the environment act as guiding mechanisms, the practices and guiding mechanisms, the practices and procedures that come to define these procedures that come to define these perceptions are labeled as climate”. perceptions are labeled as climate”.


Organizational Climate can be segmented into four Organizational Climate can be segmented into four dimensions:dimensions:

1.1. Nature of Interpersonal Relationships – this is a Nature of Interpersonal Relationships – this is a prime determinant of trust, and differs across prime determinant of trust, and differs across cultural contextscultural contexts

2.2. Nature of Hierarchy – this dimension is concerned Nature of Hierarchy – this dimension is concerned with bureaucratic structures and how they are with bureaucratic structures and how they are affected by individual or collectivistic relationshipsaffected by individual or collectivistic relationships

3.3. Nature of Work – work duties or functions can Nature of Work – work duties or functions can significantly impact employee/employer significantly impact employee/employer relationshipsrelationships

4.4. Focus of Support and Rewards – Certain cultures Focus of Support and Rewards – Certain cultures are intrinsically motivated, while others rely on are intrinsically motivated, while others rely on extrinsic benefits. extrinsic benefits.


Significant research has focused on Significant research has focused on organizational culture, and has found various organizational culture, and has found various characteristics, including the ability of culture characteristics, including the ability of culture to impact idea acceptance of new product to impact idea acceptance of new product inquisitiveness. Furthermore, according to inquisitiveness. Furthermore, according to Barnett (1953) he postulates a positive Barnett (1953) he postulates a positive correlation between the individualism of correlation between the individualism of society and its innovative potential; the society and its innovative potential; the greater the freedom of the individual to greater the freedom of the individual to explore and express opinions, the greater the explore and express opinions, the greater the likelihood of new ideas coming into being. likelihood of new ideas coming into being.

Product AdoptionProduct Adoption To determine the eventual relationship between To determine the eventual relationship between

organizations and consumers it is important to organizations and consumers it is important to understand the product adoption process. understand the product adoption process.

Prior research conducted by Hirschman (1980) Prior research conducted by Hirschman (1980) has found the “conceptualization of has found the “conceptualization of innovativeness centers on the consumers innovativeness centers on the consumers desires to obtain information about innovation”. desires to obtain information about innovation”. Furthermore, “innovativeness is equated with Furthermore, “innovativeness is equated with the inherent novelty seeking and is defined as the inherent novelty seeking and is defined as the desire to seek out the new and different” the desire to seek out the new and different” (Hirschman, 1980). (Hirschman, 1980).

The product adoption process is continuous The product adoption process is continuous model that begins with the initial consumer or model that begins with the initial consumer or “innovator”. “innovator”.

Product AdoptionProduct Adoption The product adoption process is continuous model that The product adoption process is continuous model that

begins with the initial consumer or “innovator”. begins with the initial consumer or “innovator”. The next phase of the product adoption process includes the The next phase of the product adoption process includes the

early adopters. They enjoy being first in the consumption early adopters. They enjoy being first in the consumption process, and are valued opinion leaders within the process, and are valued opinion leaders within the community. community.

The third phase of the product adoption process includes The third phase of the product adoption process includes individuals who comprise the early majority. These individuals who comprise the early majority. These individuals analyze the purchasing process of the individuals analyze the purchasing process of the “innovators” and the early majority to determine whether or “innovators” and the early majority to determine whether or not they might experience cognitive dissonance. not they might experience cognitive dissonance.

The fourth phase of the product adoption process consists of The fourth phase of the product adoption process consists of individuals who prefer to adopt a product within an individuals who prefer to adopt a product within an inclusive group known as the late majority. They have a inclusive group known as the late majority. They have a tendency to be slow with adopting new products due to tendency to be slow with adopting new products due to misinformation or being lackadaisical misinformation or being lackadaisical

This process ends with the laggards who lack timeliness, This process ends with the laggards who lack timeliness, and may not adopt the product due to being sufficiently and may not adopt the product due to being sufficiently

Product AdoptionProduct Adoption

In the overall makeup of this model it is In the overall makeup of this model it is important to understand that “adopters important to understand that “adopters other than the innovators are influenced other than the innovators are influenced in their adoption of new products and in their adoption of new products and ideas by the pressures of the social ideas by the pressures of the social system that may take the form of system that may take the form of interpersonal communications and interpersonal communications and observations, therefore, these influences observations, therefore, these influences are coming from sources external to the are coming from sources external to the individual” (Singh, 2005). individual” (Singh, 2005).


Although product adoption is Although product adoption is comprised of nefarious phases, it is comprised of nefarious phases, it is important to understand what leads important to understand what leads to the overall formulation of the to the overall formulation of the consumer decision making process. consumer decision making process.

There is a component within the There is a component within the adoption process that is exemplified adoption process that is exemplified by external sense-making abilities. by external sense-making abilities.


This overall sensemaking ability has been This overall sensemaking ability has been defined as “the cyclical process of taking defined as “the cyclical process of taking action, extracting information from stimuli action, extracting information from stimuli resulting from that action, and resulting from that action, and incorporating information and stimuli from incorporating information and stimuli from that action into the mental frameworks that that action into the mental frameworks that guide further action” (Seligman, 2006). guide further action” (Seligman, 2006).

Sensemaking is an essential component of Sensemaking is an essential component of the adoption process when analyzing the adoption process when analyzing innovationary products and ideas innovationary products and ideas


The overall The overall framework from framework from the consumer the consumer adoption and adoption and sensemaking sensemaking process is provided process is provided by Seligman by Seligman (2006): (2006):

The Relationship between The Relationship between Culture and Product Culture and Product

ConsumptionConsumption Although Hofstede’s model is from an Although Hofstede’s model is from an

organizational perspective, this organizational perspective, this comparative analysis will try to compare it comparative analysis will try to compare it cross-culturally using statistical analyses cross-culturally using statistical analyses that have been used in prior research. To that have been used in prior research. To make a broad generalization reference will make a broad generalization reference will be made to a study conducted by Singh be made to a study conducted by Singh (2005) where the cultural differences in, (2005) where the cultural differences in, and influences on consumers propensity to and influences on consumers propensity to adopt innovations will be viewed from a adopt innovations will be viewed from a statistical perspective. statistical perspective.

HypothesesHypotheses

In Singh’s research, he generated 15 In Singh’s research, he generated 15 hypotheses that were related to the hypotheses that were related to the Hofestedian methods previously Hofestedian methods previously discussed (this study will only look at discussed (this study will only look at the hypotheses that are relevant to the the hypotheses that are relevant to the aforementioned content). It is important aforementioned content). It is important to list these hypotheses to understand to list these hypotheses to understand the implications that could significantly the implications that could significantly impact the meaning of this comparative impact the meaning of this comparative study Singh (2005).study Singh (2005).

HypothesesHypotheses H1 - “Consumers from more individualistic cultures are going to display H1 - “Consumers from more individualistic cultures are going to display

a relatively higher propensity to innovate as compared with those from a relatively higher propensity to innovate as compared with those from less individualistic ones”.less individualistic ones”.

H2 - “Consumers from a more collectivist society are going to display a H2 - “Consumers from a more collectivist society are going to display a higher propensity to imitate as compared with those from a less higher propensity to imitate as compared with those from a less collectivistic one”.collectivistic one”.

H3 - “Consumers in smaller power distance cultures will display a H3 - “Consumers in smaller power distance cultures will display a higher propensity to innovate than those in large power distance higher propensity to innovate than those in large power distance cultures”.cultures”.

H4 - “Consumers in larger power distance cultures will display a higher H4 - “Consumers in larger power distance cultures will display a higher propensity to imitate than those in smaller power distance cultures”.propensity to imitate than those in smaller power distance cultures”.

H5 - “Consumers in weaker uncertainty avoidance cultures will display H5 - “Consumers in weaker uncertainty avoidance cultures will display a higher propensity to innovate than those in large power distance a higher propensity to innovate than those in large power distance cultures”.cultures”.

H6 - “Consumers in stronger uncertainty avoidance cultures will display H6 - “Consumers in stronger uncertainty avoidance cultures will display a higher propensity to imitate than those in smaller power distance a higher propensity to imitate than those in smaller power distance cultures”.cultures”.

H7 - “Consumers in more masculine cultures will display a higher H7 - “Consumers in more masculine cultures will display a higher propensity to innovate than those in large power distance cultures”.propensity to innovate than those in large power distance cultures”.

H8 - “Consumers in more feminine cultures will display a higher H8 - “Consumers in more feminine cultures will display a higher propensity to imitate than those in smaller power distance cultures”.propensity to imitate than those in smaller power distance cultures”.

AnalysisAnalysis

In this study the two countries analyzed were In this study the two countries analyzed were France and Germany. Based upon earlier data France and Germany. Based upon earlier data generated be Hofestede it was determined that generated be Hofestede it was determined that France was more individualistic, higher on power France was more individualistic, higher on power distance, higher on uncertainty avoidance, and distance, higher on uncertainty avoidance, and they were lower on masculinity/femininity. they were lower on masculinity/femininity. Statistically, the Cronbach Alpha was just under Statistically, the Cronbach Alpha was just under the desired .70 (this could have been due to the the desired .70 (this could have been due to the number of items on the scale), however it was number of items on the scale), however it was determined that the scales were satisfactory. determined that the scales were satisfactory. Furthermore, an ANOVA was used with the Furthermore, an ANOVA was used with the country categorized as the independent variable, country categorized as the independent variable, and consumer innovativeness and the propensity and consumer innovativeness and the propensity to imitate as the dependent variables. to imitate as the dependent variables.

ResultsResults H1 – Not supported due to lack of statistical H1 – Not supported due to lack of statistical

significancesignificance H2 – Not supported due to lack of statistical H2 – Not supported due to lack of statistical

significancesignificance H3 – Supported due to statistical significanceH3 – Supported due to statistical significance H4 – Not supported due to lack of statistical H4 – Not supported due to lack of statistical



significancesignificance

ResultsResults It is apparent that consumer innovation is It is apparent that consumer innovation is

related to many of the Hofstedian components, related to many of the Hofstedian components, except for individualism. except for individualism.

It is interesting to see that an individualistic It is interesting to see that an individualistic culture would not have a higher propensity to culture would not have a higher propensity to innovate considering there is conflicting innovate considering there is conflicting evidence that is thought to exist, particularly evidence that is thought to exist, particularly Shane (1992), who found that “the Shane (1992), who found that “the psychological characteristics of independence, psychological characteristics of independence, achievement, and nonconformity, all of which achievement, and nonconformity, all of which have been found to encourage innovation, are have been found to encourage innovation, are more common in individualistic societies”. more common in individualistic societies”.

ResultsResults

Based upon this findings it would be Based upon this findings it would be possible to make a generalization that possible to make a generalization that products that are introduced in cultures products that are introduced in cultures that are defined by “weak uncertainty that are defined by “weak uncertainty avoidance, small power distance, low avoidance, small power distance, low uncertainty avoidance would have little uncertainty avoidance would have little trouble in being accepted as our study trouble in being accepted as our study has shown these characteristics to be has shown these characteristics to be conducive to adoption of things novel” conducive to adoption of things novel” (Singh, 2005). (Singh, 2005).

The Relationship between The Relationship between Culture and Organizational Culture and Organizational

InnovationInnovation Although there is a strong relationship Although there is a strong relationship

between innovative organizations and between innovative organizations and innovative consumers it is important to innovative consumers it is important to determine the cultural relationship determine the cultural relationship impacting firms implementing a impacting firms implementing a transnational or global strategy. It may be transnational or global strategy. It may be necessary to refer back to the four necessary to refer back to the four dimensions mentioned earlier in the dimensions mentioned earlier in the comparative analysis to further comparative analysis to further understand the relationship between understand the relationship between cultural variations and organizational cultural variations and organizational innovation. innovation.


InnovationInnovation Conducting a comparison between Japanese Conducting a comparison between Japanese

and American firms, there are many and American firms, there are many differences, particularly the importance of the differences, particularly the importance of the collective over the needs of the individual. collective over the needs of the individual.

In Japan it is Herbig and Dunphy (1998) it is In Japan it is Herbig and Dunphy (1998) it is important to minimize differences, preserve important to minimize differences, preserve harmony, and reinforce group loyalty. harmony, and reinforce group loyalty.

The American culture has significant The American culture has significant differences that has led to beliefs in “self-differences that has led to beliefs in “self-orientation”, a primal and individualist need orientation”, a primal and individualist need to survive, and decisions that are based upon to survive, and decisions that are based upon competitive or argumentative analysis. competitive or argumentative analysis.


InnovationInnovation In studies conducted on Japanese and In studies conducted on Japanese and

American firms, it has been found that American firms, it has been found that organizations in Japan have placed a significant organizations in Japan have placed a significant emphasis on collectivistic manufacturing emphasis on collectivistic manufacturing processes, including quality control and mass processes, including quality control and mass production (Herbig and Dunphy, 1998). production (Herbig and Dunphy, 1998). Although these have been beneficial for Although these have been beneficial for strategic growth of Japanese firms, it has strategic growth of Japanese firms, it has “inhibited independent entrepreneurship and “inhibited independent entrepreneurship and individual creativity, resulting in a detrimental individual creativity, resulting in a detrimental effect upon radical innovations and inventions” effect upon radical innovations and inventions” (Herbig and Dunphy, 1998). (Herbig and Dunphy, 1998).


InnovationInnovation Conclusively, it is apparent that national culture can Conclusively, it is apparent that national culture can

either have a positive or negative influence on the either have a positive or negative influence on the overall ability of a firm to follow an entrepreneurial overall ability of a firm to follow an entrepreneurial or innovative path. According to Herbig and or innovative path. According to Herbig and Dunphy (1998) cultures valuing creativity will Dunphy (1998) cultures valuing creativity will continue to have a greater number of innovation, continue to have a greater number of innovation, and “those countries that reward technical ability and “those countries that reward technical ability and higher education will prosper in innovative and higher education will prosper in innovative pursuits” pursuits”

Furthermore, the societal level of innovation is Furthermore, the societal level of innovation is “directly proportional to the encouragement and “directly proportional to the encouragement and status given to entrepreneurial efforts within the status given to entrepreneurial efforts within the culture and to the emphasis given it relative to the culture and to the emphasis given it relative to the survival of the culture” (Herbig and Dunphy, 1998).survival of the culture” (Herbig and Dunphy, 1998).

DiffusionDiffusion

In order to forge a relationship between In order to forge a relationship between innovationary organizations and consumers innovationary organizations and consumers that adopt these products, it will be that adopt these products, it will be important to determine the functionary important to determine the functionary measure that brings these two entities measure that brings these two entities together. together.

Diffusion, according to Rogers (1976) is Diffusion, according to Rogers (1976) is “the process by which a product innovation “the process by which a product innovation is communicated and accepted through is communicated and accepted through certain channels among the members of a certain channels among the members of a social system over time”. social system over time”.

DiffusionDiffusion The diffusionary The diffusionary

process can be process can be further illustrated further illustrated by Frambach by Frambach (1993): (1993):

DiffusionDiffusion

This study has analyzed the various This study has analyzed the various facets of organizational innovation, facets of organizational innovation, however, it is important to however, it is important to understand how these organizations understand how these organizations diffuse their product to the end diffuse their product to the end adopter or consumer. adopter or consumer.

DiffusionDiffusion According to Rogers (1983), there are “five characteristics According to Rogers (1983), there are “five characteristics

of an innovation that are generalized in their relation to of an innovation that are generalized in their relation to the degree of adoption of that innovation in a social the degree of adoption of that innovation in a social system. system.

1.1. Advantage of innovation – this is considered the degree to Advantage of innovation – this is considered the degree to which an innovation is superior in perceptive terms which an innovation is superior in perceptive terms

2.2. Compatibility of an innovation – this is considered the Compatibility of an innovation – this is considered the “degree to which an innovation is perceived as consistent “degree to which an innovation is perceived as consistent with current values, past experiences, and the needs of with current values, past experiences, and the needs of potential adopters” potential adopters”

3.3. Complexity of an innovation – the is the perception of the Complexity of an innovation – the is the perception of the overall difficulty related to the specific use of a product or overall difficulty related to the specific use of a product or service service

4.4. Trialability of an innovation – can an innovation be tested Trialability of an innovation – can an innovation be tested or sample or sample

5.5. Observability of an innovation – this is nearly related to the Observability of an innovation – this is nearly related to the complexity of an innovation, but the definition is more complexity of an innovation, but the definition is more concerned with the overall observation of an innovation concerned with the overall observation of an innovation

DiffusionDiffusion It is important to explore the attributes that comprise the nature of It is important to explore the attributes that comprise the nature of

products and services that experience successful diffusion based products and services that experience successful diffusion based upon individualized strategies of the firm. These attributes are upon individualized strategies of the firm. These attributes are based upon four key determinants devised by Lilien and Yoon (1989) based upon four key determinants devised by Lilien and Yoon (1989)

1.1. Organizational factors and strategic processes – these factors are Organizational factors and strategic processes – these factors are controlled by leadership within an organization, and are developed controlled by leadership within an organization, and are developed using participatory actions by those within the upper echelons of the using participatory actions by those within the upper echelons of the firm firm

2.2. Production and R&D factors – these factors affect product Production and R&D factors – these factors affect product superiority and the overall complexity and the “uniqueness” of a superiority and the overall complexity and the “uniqueness” of a product or service. It is important to have a well documented product or service. It is important to have a well documented structure that facilitates managerial involvement in this process structure that facilitates managerial involvement in this process

3.3. Marketing factors – marketing consists of an interactionary Marketing factors – marketing consists of an interactionary relationship between the producer and the consumer. These factors relationship between the producer and the consumer. These factors have different effectiveness levels, and will be further analyzed in a have different effectiveness levels, and will be further analyzed in a different section of this analysis different section of this analysis

4.4. Market and environmental factors – these factors include Market and environmental factors – these factors include competition within the market, which is believe to cause “a high competition within the market, which is believe to cause “a high level of competition among firms in a certain industry that may level of competition among firms in a certain industry that may enlarge the pressure on an individual firm to adopt a certain enlarge the pressure on an individual firm to adopt a certain innovation” (Frambach, 1993).innovation” (Frambach, 1993).

Interactivity of Buyers and Interactivity of Buyers and SuppliersSuppliers

The relationship between buyers and suppliers The relationship between buyers and suppliers is essential for continuity in the diffusion is essential for continuity in the diffusion process. Within this overall paradigm it is process. Within this overall paradigm it is important to determine the validity of this important to determine the validity of this relationship by analyzing a framework by relationship by analyzing a framework by Frambach (1993), that states “the speed and Frambach (1993), that states “the speed and rate of adoption of innovation by organizations rate of adoption of innovation by organizations will be positively related to the extent that the will be positively related to the extent that the supplier firm has interacted with other parties supplier firm has interacted with other parties (especially potential adopters of the innovation) (especially potential adopters of the innovation) more intensively during the innovation more intensively during the innovation process”. process”.

Interactivity of Buyers and Interactivity of Buyers and SuppliersSuppliers

One of the biggest proponents of the One of the biggest proponents of the diffusion process is the media – diffusion process is the media – according to Rogers (1995) “mass-media according to Rogers (1995) “mass-media channels are more effective in creating channels are more effective in creating knowledge of innovations, whereas knowledge of innovations, whereas interpersonal channels are more interpersonal channels are more effective in forming and changing effective in forming and changing attitudes toward the new idea, and thus attitudes toward the new idea, and thus influencing the decision to adopt or influencing the decision to adopt or reject a new idea. reject a new idea.

Interactivity of Buyers Interactivity of Buyers and Sellersand Sellers

As the media becomes more involved As the media becomes more involved in the diffusion process it will lead to in the diffusion process it will lead to more product or service awareness more product or service awareness that has been proposed to affect that has been proposed to affect overall efficiency related to the overall efficiency related to the “communication process during each “communication process during each stage in the new product sales stage in the new product sales cycle” (Tellefesen and Takada, cycle” (Tellefesen and Takada, 1999). 1999).


As this awareness increases it is As this awareness increases it is important for a firm to devise strategy important for a firm to devise strategy that is conducive to an effective that is conducive to an effective relationship between the producer and relationship between the producer and the consumer. According to Forlani and the consumer. According to Forlani and Parthasarathy (2003), factors including Parthasarathy (2003), factors including income, education, the availability of income, education, the availability of mass media, and cultural factors will be mass media, and cultural factors will be inclusive within the overall diffusion inclusive within the overall diffusion pattern pattern


This pattern can be further explained by the media availability and This pattern can be further explained by the media availability and economic framework provided by Forlani and Parthasarathy (2003):economic framework provided by Forlani and Parthasarathy (2003):

As the mass media becomes more ingrained or available in a society it diffusion becomes rapidly As the mass media becomes more ingrained or available in a society it diffusion becomes rapidly progressive. More importantly a greater mass media presences “will feature a higher proportions of progressive. More importantly a greater mass media presences “will feature a higher proportions of earlier adopter and (other factors remaining constant) will move through the earlier stages of the earlier adopter and (other factors remaining constant) will move through the earlier stages of the adoption process faster than markets with low mass media presence” (Forlani and Parthasarathy, 2003). adoption process faster than markets with low mass media presence” (Forlani and Parthasarathy, 2003).


In a cross-continent analysis it is In a cross-continent analysis it is apparent that media development is apparent that media development is significant in many Asian and Western significant in many Asian and Western countries when compared to Africa, countries when compared to Africa, which suggests that “Asian countries which suggests that “Asian countries are likely to move through the are likely to move through the preliminary stages of the adoption preliminary stages of the adoption process much faster than their African process much faster than their African counterparts” (Forlani and counterparts” (Forlani and Parthasarathy, 2003). Parthasarathy, 2003).

ConclusionConclusion

The purpose of this study is to show the The purpose of this study is to show the possible relationship that exists between possible relationship that exists between organizational innovation and new organizational innovation and new product adoption. From a multinational product adoption. From a multinational perspective it could be deduced that perspective it could be deduced that international marketers studying international marketers studying product diffusion would need to conduct product diffusion would need to conduct appropriate analyses before introducing appropriate analyses before introducing new products and services into an new products and services into an unexplored market. unexplored market.


It would seem that innovationary It would seem that innovationary organizations and consumers have organizations and consumers have developed characteristics that would be developed characteristics that would be termed “individualistic”. Some of the termed “individualistic”. Some of the research presented in this study would research presented in this study would seem to be contradictory; particularly one seem to be contradictory; particularly one rejected hypothesis that stated rejected hypothesis that stated “consumers from more individualistic “consumers from more individualistic cultures are going to display a relatively cultures are going to display a relatively higher propensity to innovate as compared higher propensity to innovate as compared with those from less individualistic ones”. with those from less individualistic ones”.


It was mentioned in other research that “the It was mentioned in other research that “the psychological characteristics of psychological characteristics of independence, achievement, and independence, achievement, and nonconformity, all of which have been found nonconformity, all of which have been found to encourage innovation, are more common to encourage innovation, are more common in individualistic societies”. It is possible in individualistic societies”. It is possible that these findings are not representative of that these findings are not representative of an entire country, and it is possible that this an entire country, and it is possible that this information could be inconclusive due to information could be inconclusive due to France being an individualistic country France being an individualistic country (though not as significant as Germany). (though not as significant as Germany).

ConclusionConclusion This study did provide important information for This study did provide important information for

organizational firms looking at new markets and organizational firms looking at new markets and opportunities. Creating a proper organizational opportunities. Creating a proper organizational culture and climate that uses various media induced culture and climate that uses various media induced marketing strategies will induce product adoption marketing strategies will induce product adoption from cultures that would be considered to have weak from cultures that would be considered to have weak uncertainty avoidance, low power distance, and weak uncertainty avoidance, low power distance, and weak uncertainty avoidance. uncertainty avoidance.

Conclusively, Aubry (2007) “further research is Conclusively, Aubry (2007) “further research is definitely needed in this field to determine the definitely needed in this field to determine the changes that have occurred in culture, and how these changes that have occurred in culture, and how these changes have impacted the overall social structure of changes have impacted the overall social structure of organizations that could lead to greater differences in organizations that could lead to greater differences in the eventual diffusion and adoption process of the eventual diffusion and adoption process of innovationary concepts, services, and ideas”. innovationary concepts, services, and ideas”.

the relationship between organizational innovation and new product adoption by michael aubry

Documents

culture culture

culture herbig

collectivistic societies

acceptance of inequality

influence of culture

organizational innovation

use of innovation

acceptance of products