Technology Adoption in Organizations: Use of Incentives and Standards for Control and Coordination

39 Pages Posted: 10 Sep 2001

See all articles by Rajiv M. Dewan

Rajiv M. Dewan

University of Rochester - Simon Business School

Marshall Freimer

University of Rochester - Simon Graduate School of Business

Abraham Seidmann

Boston University - Questrom School of Business; University of Rochester - Simon Business School

Shankar Sundaresan

Pennsylvania State University

Date Written: March 2001

Abstract

Technology adoption has become an important management issue in today's decentralized organizations. Disparate systems and the attendant incompatibility costs between users and departments within an organization can create inefficiencies and reduce productivity. Fortunately,the managers of the organization have a rich tool-set - incentives and standards that they can use to manage technology adoption. We show that simple incentive plans, even ones that only provide bonuses for selection of standard technology or only provide penalties for non-standard selections suffice. Further, it is even possible to devise incentive plans which have zero expected costs to users and organizations and yet induce the users to pick common systems. We also examine technology adoption with communication between managers and users.

Suggested Citation

Dewan, Rajiv M. and Friemer, Marshall and Seidmann, Abraham Avi and Sundaresan, Shankar, Technology Adoption in Organizations: Use of Incentives and Standards for Control and Coordination (March 2001). Available at SSRN: https://ssrn.com/abstract=283000 or http://dx.doi.org/10.2139/ssrn.283000

Rajiv M. Dewan (Contact Author)

University of Rochester - Simon Business School ( email )

Carol Simon Hall 3-312
Rochester, NY 14627
United States
585-275-3827 (Phone)

Marshall Friemer

University of Rochester - Simon Graduate School of Business ( email )

Carol Simon Hall 3-320
Rochester, NY 14627
United States
585-275-3013 (Phone)

Abraham Avi Seidmann

Boston University - Questrom School of Business ( email )

595 Commonwealth Avenue
Boston, MA 02215
United States

University of Rochester - Simon Business School ( email )

Carol Simon Hall 3-333C
Rochester, NY 14627
United States
585-275-5694 (Phone)
585-275-9331 (Fax)

HOME PAGE: http://www.ssb.rochester.edu/fac/Seidmannav/

Shankar Sundaresan

Pennsylvania State University ( email )

0316 BEAM BUSINESS ADMIN
University Park, PA 16802-3306
United States
814-865 0378 (Phone)

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