Diffusion of innovation and business size: a longitudinal study of PACIA
Abstract
Purpose
Size is one of the most controversial influencing factors in the diffusion literature. This paper seeks to shed light on this controversy by examining the relationship between business size and the diffusion of both technological innovation and activity‐based costing (ABC) as an administrative innovation. The findings are expected to provide some guidelines for managers in helping them to determine how to facilitate the diffusion of innovations in their organisations.
Design/methodology/approach
The research adopts a longitudinal survey method to examine practices within the Plastics and Chemicals Industries Association, which is the pre‐eminent national body representing Australia's fourth largest manufacturing sector.
Findings
The study suggests a significant positive relationship between business size and both technological innovation and the implementation of ABC.
Originality/value
Knowledge of the impact of size on diffusion of innovation has been complicated by the mixed results of extant studies; the paper significantly contributes to this debate.
Keywords
Citation
Askarany, D. and Smith, M. (2008), "Diffusion of innovation and business size: a longitudinal study of PACIA", Managerial Auditing Journal, Vol. 23 No. 9, pp. 900-916. https://doi.org/10.1108/02686900810908445
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited