Uncertainty and Home Builders' Adoption of Technological Innovations

Abstract

An empirical investigation pertaining to the adoption of technological innovations by small- and medium-sized home building firms was conducted by multiple regression analysis of data collected from interviewing over 100 home builders across the country. The research shows that home builders who are more apt to adopt nondiffused technological innovations tap into more sources of information about new products from portions of their organizational environments than do nonadopters. The data also indicate that relatively early adopters of high uncertainty innovations differ from those more apt to be relatively early adopters of low uncertainty innovations in the characteristics of the individuals involved in innovation-related activities. The empirical findings support the general hypothesis that uncertainty reduction plays a key role in the adoption of technological innovations in residential construction.