The paper 'Compatibility and the Adoption of Innovation" is a great example of business coursework. Over the years doing research on the demand and supply of administrative innovations has risen as the most profound field. The entrance of innovations such as the balanced scorecard, strategic management accounting, target costing and many others has lead brought about body research. (Zawawi & Hoque, 2010). The main aim of this research has been on the identification of general factors and characteristics of organizations that affect the adoption of innovation. Organization culture is seen as the shared beliefs, values and assumptions by the organizational members.
(Jung et al. ,2009). In this regard, the culture of an organization fundamentally influences how the members of a firm make the interpretation of social practices and objects. The goals and strategies enacted by members to connect the objects and practices to the aims of the company. (Love, 2008). The author has emphasized the role of compatibility as a link between the organization structure and innovations. Innovation is regarded compatible to a firm's culture when the beliefs and values to be applied for the affectivity of the practice are equally shared by the members of the organization.
(Love and Cebon, 2008). Any change in practices that wants to be used by a firm will always meet resistance from the members if they are conflicting with the cultural beliefs and values that are in existence. According to the study by Lozeau et al. , (2002), new practice implementation by the management will sail through smoothly, and the use of a particular innovation is more successful when the culture of the organization is in line with the values and beliefs embedded in the organizational innovations.
Research by Love and Cebon (2008), established that the rate of adoption of manufacturing practices is in direct relation to the compatibility of the culture of an organization and the adopting firms regarding beliefs and values associated with best manufacturing practices. Compatibility plays a significant role in the adoption of innovation. Compatibility between the culture of an organization and the beliefs and values related to particular innovations acts as guidance for a firm in the approval of the innovation. The basis of all this is because innovation is not conflicting with the culture of the organization.
To add on this also is a report that reported interactions between these factors in consideration in the course of the diffusion process. A suggestion by the authors alludes that the influence of compatibility declines over time as innovations become institutionalized. Hence according to them the culture of an organization is stronger among the early adopters and considerably drops on the late adopters. (Brown et al. 2004). Economic factors have been of the essence in the adoption of decisions by firms.
Organization adoption of decisions is based on the consideration by the organization if either the interpretation of situations will be avenues for gains or losses. According to George et al. , 2006, the analysis of the situations as either of gain or loss determines the cognition of decision-makers and their motivation in adopting the decisions. In the initial stages of the diffusion process, the enactment of innovation by firms' members presents them with an avenue, and therefore the members assess the probability of maximizing the gains.
On the other hand, late adopters may opt for the adoption of innovation with a motivation of avoiding the potential losses due to abstaining from the adoption of the same. Hence these economic considerations play a role in the decision-making process. The social factor is also at play in the adoption process. A firm that adopts an innovation early may be having a motive of maintaining a standard that is higher than other firms. Through this, a firm may want to outdo the competitors. Also, non-adopters always perceive the threat of lost legitimacy.
In this regard, they eventually adopt a decision due to the threat. This explains the social considerations of adoption. In the same breath, Later adopters practice social learning to know a lot about that which is working and the one not working, and they have intentions of experimenting with innovation to an extent where they can establish the standards guiding the new adoption behavior of innovations. (Kennedy et al. , 2009).
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Brown, D.A., Giacobbe, F., Booth, P.,( 2004). Technological and organization influences on the adoption of activity-based costing. Australia.