Innovation Diffusion Modeling in the Construction Industry

Abstract

The innovation diffusion modeling approach proposes that the diffusion of an innovation in an industry is mainly driven by internal and external influence factors. But the innovation diffusion models used in previous research studies conducted in the construction management literature are excessively restrictive. This research uses a more flexible model called the nonuniform influence (NUI) model to study the diffusion of a technological innovation, namely, computer aided design (CAD) technology in the Turkish architectural design practice; and an administrative innovation, namely, ISO 9000 certification in the Turkish precast concrete industry. The research findings point out that the NUI model performs significantly better than previously used models and that internal rather than external influence plays a predominant role in the diffusion of both types of innovation. The research findings provide additional insights into the diffusion of CAD technology and ISO 9000 certification which could not be captured by the previously used diffusion models. They show that internal influence on the diffusion of CAD technology increases with passage of time and that internal influence on the diffusion ISO 9000 certification decreases with passage of time. The research has academic importance because it addresses the limitations of previous innovation diffusion research and provides quantitative insights into the diffusion of innovations; knowledge that is lacking in the construction management literature. The research is of practical importance because it provides useful observations that architecture/engineering/construction firms can use to understand the presence of imitative behavior in the innovation diffusion process and the role of innovation characteristics in imitative behavior.