THE ADOPTION AND DIFFUSION OF INNOVATIONS IN THE INDUSTRIAL MARKET: AN EMPIRICAL RESEARCH OF THE DIFFUSION OF ELECTRONIC BANKING IN THE NETHERLANDS

                        FRAMBACH, RUDOLF THEODOOR; DR

                        KATHOLIEKE UNIVERSITEIT BRABANT (THE NETHERLANDS), 1993
 
                        ECONOMICS, COMMERCE-BUSINESS (0505)
 

                         Because of today's dynamic business environment, knowledge of the determinants of new product
                         acceptance in the marketplace is very important to most firms. Diffusion theory can give more insight
                         concerning this matter. However, diffusion research in the past has been focused on (potential) adopters
                         of an innovation in explaining diffusion processes, thereby largely ignoring the influence of the supplier.
                         Also, research has been biased to the investigation of diffusion processes in consumer markets. The
                         objective of this study is to examine whether variables related to the supplier of an innovation, in addition
                         to variables concerning the (potential) adopter, significantly influence the adoption and diffusion process
                         of the innovation in the industrial market. Based on diffusion theory, innovation management and
                         industrial marketing, a theoretical model of organizational innovation diffusion is formulated. In this
                         respect, the innovation adoption decision is hypothesized to be influenced by two groups of variables,
                         one related to the supplier of an innovation and one concerning (the perception of) the (potential)
                         adopters of the innovation. The research model is empirically tested by studying the diffusion of
                         electronic banking in the business-to-business market in the Netherlands. Electronic banking is an
                         innovation from the financial services industry and concerns the interactive communication link between
                         a bank and an organization. The empirical results show the importance of supply-side variables in
                         explaining adoption behavior. In this study of the diffusion of electronic banking, it was found that the
                         most important variables which influence innovation adoption behavior of organizations are the marketing
                         strategy pursued by the supplier of the innovation and the characteristics of the innovation as perceived
                         by the (potential) adopter.

 


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