An Analysis of Factors Associated with the Adoption and Diffusion of a Technological Innovation Within New Zealand Manufacturing Industry

Abstract

The need for more effectively marketing New Zealand's manufactured exports requires an increasing level of manufacturing expertise and technological knowhow. To this end, the development of efficient and effective decision parameters for evaluating technological innovations new to the firm becomes an important policy consideration for manufacturers who wish to remain competitive on World markets. Secondary to this is the need for firms to develop effective strategies for monitoring technological developments and major breakthroughs within their respective industries. This study focused attention on the diffusion of one particular technological innovation; numerically controlled machine tools. The dynamics of information gathering and innovation evaluation methods used by firms were examined in depth to determine why some manufacturers adopted this technological innovation earlier than others. Specifically, the objectives of the research were: (1) To identify and investigate empirically those key factors within the New Zealand manufacturing environment which aid or inhibit the adoption of new technology at the level of the firm. (2) To consider the implications of the research in respect of policy for firms, supplies, and public policy-making involved with technology, innovation, and its diffusion into manufacturing firms. Interviews were conducted with firms who had adopted, were considering, or had rejected the use of numerically controlled machine tools. In all 33 usable questionnaires were completed. Sixteen were from adopter firms, twelve from decider firms, and five from rejector firms. The relationship between the time of first information on numerically controlled machine tools and eleven independent variables was examined. The possible influence of a further fourteen independent variables on the time of decision to adopt numerically controlled machine tools was also considered. In addition, the relationship between the time of first information and the time of decision to adopt or reject was explored. Finally, the profiles of adopter and rejector firms respectively were examined for possible differences between the two groups of firms. The results provided significant findings in respect of the innovation information search and adoption decision processes evident in adopter, decider, and rejector firms. They also provided implications for individual manufacturing firms and suppliers, public policy makers and for theory.