Information processing perspective on organisational innovation adoption process

Abstract

For a long time, the literature on organisational innovation adoption has focused largely on the adoption choice and defined the adopter organisation as a passive information receiver. To portray a more realistic picture of the organisations of today, this study defines the adopter organisation as an active information processor. By the means of a multiple-case study, organisational innovation adoption is defined as a function of information processing activities. The study defines two key attributes of information processing: depth (the intensity of information processing devoted to consider a fit between solutions and the need) and breadth (the number of solutions processed). Depth and breadth are found to be associated with the features of the individuals participating in the process and the elements of the adopter organisation and its key business relationships. Technical education and technical experience define the individual capacity for information processing increasing the depth of these activities. Individual risk aversion and organisational sanctions seem to steer decision-making toward a democratic style that increases the depth and breadth of the activities. A strong relationship with suppliers seems to decrease, whereas the adopter company’s other business relationships seem to increase, the depth and breadth of the activities.