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Forces driving adoption of new information technologies Tackles forces that drive construction firms to adopt new technologies.

Focuses on CAD and electronic data interchange technologies and studies in-depth eight innovation adoption decisions. Forces that created the managerial stimuli for innovation and organizational characteristics that played an important role in the adoption. Forces that drive innovation: competitive advantage, process problems, technological opportunity and institutional requirements. Benefits from technological advances depend on the extent to which these technologies are utilized. Due to the negative consequences on productivity and competitiveness, the construction industry is slow in adopting new technologies. This study focuses on how the need for a new technology emerges and what contextual and organizational factors influence its adoption.

Focuses on two commercially available information technologies, electronic data interchange (EDI) and 3D CAD. Each case was analysed to identify: (1) the forces that initiated the change; (2) the factors that managers considered during the decision; (3) the organizational factors that influenced the decision. (cases were compared for similarities and patterns.) The findings identify four different forces for innovation and the different organizational characteristics that affect a companys sensitivity to each of the four forces. The paper proposes a model that may explain the diffusion of technology. (check if to be included) As defined: Innovation as defined is an idea, practice or material artefact perceived to be new, it can be technological, such as a new product of process technology. Diffusion Research Diffusion is the process by which a new technology becomes accepted and used by its potential users. Diffusion Research examines the rate of adoption of an innovation through a population of potential users. A large amount of research attempted to identify critical characteristics of a technology that facilitate its adoption. The five attributes as proposed by Rogers:

Relative advantage: degree to which the innovation is perceived as better than the technology it replaces Compatibility Complexity difficulty in understanding and using the technology Observability and trialbility ability to observe and test on a limited basis the performance of the new technology

Other researchers emphasized the following attributes: Economic characteristics of the technology Radicalness of the innovation Centrality (if the technology is critical for the organizational performance)

Organizational Innovativenes Research As per Rogers, the dependent variable is innovativeness, which is usually assessed by the timing of adoption of a technology of the number of innovations an organization adopted in a given time period. Innovativeness research focus on the influenced of organizational characteristics including: Centralization of decision making Organizational environment that supports innovation Slack (not using due diligence, care, negligible) resources that enable organizations to search for solutions External communication channels that increase awareness of innovations

Diffusion research has been criticized for inconsistent findings. Gold suggested that innovation research should pay more attention to the decision making process and the market context. Tatums classification of organizational factors that affect innovation: Organizational structure Organizational culture support for the champions, freedom of the doer, commitment of money and tolerance of risk Key individuals the gatekeeper who identifies external technology. champions individuals who absorb the risks and drive the change

Industry Environment According to Mowry and Rosenberg (1979) mechanisms of technology push and market pull are both important for the innovation process. Competitive pressures often drive firms to adopt new technologies to differentiate from competitors or to gain a cost advantage (Mansfield 1968: porter 1985) The rate of adoption depends on the interactions between adopters. Imitation effects play an important role in the diffusion of innovations. The increased technical complexity of facilities, competitive pressures to owners who demand more construction for the moneyand increased international competition are forcing a shift in the basis of competition from managerial to technological issues.(Tatum1988) As per hansens study (1993) following are the reasons/drive why firms upgrade to cad systems: Due to the strategic planning process and includes pressures from clients, technological opportunities for increased productivity Slack resources appear to be more important in the adoption decision than in the decision to upgrade the CAD system There is little formal assessment of risk but more effort to minimize the risks, typically by funding the technology from existing projects The existing technological capabilities influence the selection of the system used