Managing organizational innovation: the evolution from word processing to office information systems
Managing organizational innovation: the evolution from word processing to office information systems
Forecasting with a repeat purchase diffusion model
Management Science
Diffusion in computing networks: the case of BITNET
Communications of the ACM
Information systems innovation among organizations
Management Science
Information technology innovations: a classification by IT locus of impact and research approach
ACM SIGMIS Database - Special double issue: diffusion of technological innovation
Data Processing Technology and Economics
Data Processing Technology and Economics
Modelling Critical Mass for E-Commerce: the Case of Hong Kong
Electronic Commerce Research
Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
A Choice Model for the Selection of Computer Vendors and Its Empirical Estimation
Journal of Management Information Systems
Speed Matters: The Role of Free Software Offer in Software Diffusion
Journal of Management Information Systems
Information Technology Diffusion with Influentials, Imitators, and Opponents
Journal of Management Information Systems
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The organizational adoption of information technology (IT) innovations has been an area of increasing research activity in the last two decades. While much attention has focused on the relationship between attributes of the innovation and the adoption decision, little has been done to study the adopters' reactions to changes in these attributes over time. An important innovation attribute is price, which is commonly used as a proxy for adoption cost. In this paper, we investigate how organizations in the United States react to mainframe price changes over a period of thirty years, from 1955 to 1984. A parsimonious diffusion model that integrates both diffusion and pricing effects is developed. The model is empirically tested using annual adoption and pricing data of mainframes. Quality-adjusted price index is used to account for any changes in quality improvement over time. Our findings indicate that (1) price is an important factor in the diffusion process, (2) organizations' reactions to price changes (i.e., price elasticity) are not constant, and (3) elasticity dynamics can serve as an innovation attribute that provides a continuous characterization of adoption behavior over the life cycle of an innovation. Implications to IS research and opportunities for future work are also discussed.