ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT

Detalhes bibliográficos
Autor(a) principal: Chulkov, Dmitriy V.
Data de Publicação: 2017
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Journal of Information Systems and Technology Management (Online)
Texto Completo: https://www.revistas.usp.br/jistem/article/view/143731
Resumo: Managerial decisions on the adoption of innovative technologies by a firm are made under conditions of uncertainty and must account for network externalities that imply the benefit of a technology is received not only from its intrinsic payoff, but also from the size of the network of other adopters. The theoretical model presented in this study demonstrates that for firms evaluating information technology investment with network effects key determinants of the technology selection pattern are adoption reversibility and switching costs. If switching costs are sufficiently high to make technology adoption irreversible then safer established technologies have an advantage as choosing a riskier untested technology opens the firm to the risk of being stranded without a network of followers. With lower switching costs, the technology adoption decision is reversible which provides an advantage to riskier untested technologies. A discussion of empirical evidence on adoption patterns in information technology provides application for the theoretical model.
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spelling ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENTInformation technologytechnology adoptionswitching costsreversible decisionsManagerial decisions on the adoption of innovative technologies by a firm are made under conditions of uncertainty and must account for network externalities that imply the benefit of a technology is received not only from its intrinsic payoff, but also from the size of the network of other adopters. The theoretical model presented in this study demonstrates that for firms evaluating information technology investment with network effects key determinants of the technology selection pattern are adoption reversibility and switching costs. If switching costs are sufficiently high to make technology adoption irreversible then safer established technologies have an advantage as choosing a riskier untested technology opens the firm to the risk of being stranded without a network of followers. With lower switching costs, the technology adoption decision is reversible which provides an advantage to riskier untested technologies. A discussion of empirical evidence on adoption patterns in information technology provides application for the theoretical model.TECSI - FEA - Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária2017-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/xmlhttps://www.revistas.usp.br/jistem/article/view/14373110.4301/s1807-17752017000300001Journal of Information Systems and Technology Management; v. 14 n. 3 (2017); 309-321Journal of Information Systems and Technology Management; Vol. 14 No. 3 (2017); 309-321Journal of Information Systems and Technology Management; Vol. 14 Núm. 3 (2017); 309-3211807-1775reponame:Journal of Information Systems and Technology Management (Online)instname:Universidade de São Paulo (USP)instacron:USPenghttps://www.revistas.usp.br/jistem/article/view/143731/138386https://www.revistas.usp.br/jistem/article/view/143731/148053Copyright (c) 2018 JISTEM - Journal of Information Systems and Technology Management (Online)info:eu-repo/semantics/openAccessChulkov, Dmitriy V.2018-02-23T12:20:01Zoai:revistas.usp.br:article/143731Revistahttp://www.scielo.br/scielo.php?script=sci_serial&pid=1807-1775&lng=pt&nrm=isoPUBhttps://old.scielo.br/oai/scielo-oai.php||jistem@usp.br1807-17751807-1775opendoar:2018-02-23T12:20:01Journal of Information Systems and Technology Management (Online) - Universidade de São Paulo (USP)false
dc.title.none.fl_str_mv ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
title ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
spellingShingle ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
Chulkov, Dmitriy V.
Information technology
technology adoption
switching costs
reversible decisions
title_short ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
title_full ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
title_fullStr ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
title_full_unstemmed ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
title_sort ON THE ROLE OF SWITCHING COSTS AND DECISION REVERSIBILITY IN INFORMATION TECHNOLOGY ADOPTION AND INVESTMENT
author Chulkov, Dmitriy V.
author_facet Chulkov, Dmitriy V.
author_role author
dc.contributor.author.fl_str_mv Chulkov, Dmitriy V.
dc.subject.por.fl_str_mv Information technology
technology adoption
switching costs
reversible decisions
topic Information technology
technology adoption
switching costs
reversible decisions
description Managerial decisions on the adoption of innovative technologies by a firm are made under conditions of uncertainty and must account for network externalities that imply the benefit of a technology is received not only from its intrinsic payoff, but also from the size of the network of other adopters. The theoretical model presented in this study demonstrates that for firms evaluating information technology investment with network effects key determinants of the technology selection pattern are adoption reversibility and switching costs. If switching costs are sufficiently high to make technology adoption irreversible then safer established technologies have an advantage as choosing a riskier untested technology opens the firm to the risk of being stranded without a network of followers. With lower switching costs, the technology adoption decision is reversible which provides an advantage to riskier untested technologies. A discussion of empirical evidence on adoption patterns in information technology provides application for the theoretical model.
publishDate 2017
dc.date.none.fl_str_mv 2017-12-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://www.revistas.usp.br/jistem/article/view/143731
10.4301/s1807-17752017000300001
url https://www.revistas.usp.br/jistem/article/view/143731
identifier_str_mv 10.4301/s1807-17752017000300001
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://www.revistas.usp.br/jistem/article/view/143731/138386
https://www.revistas.usp.br/jistem/article/view/143731/148053
dc.rights.driver.fl_str_mv Copyright (c) 2018 JISTEM - Journal of Information Systems and Technology Management (Online)
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2018 JISTEM - Journal of Information Systems and Technology Management (Online)
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/xml
dc.publisher.none.fl_str_mv TECSI - FEA - Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária
publisher.none.fl_str_mv TECSI - FEA - Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária
dc.source.none.fl_str_mv Journal of Information Systems and Technology Management; v. 14 n. 3 (2017); 309-321
Journal of Information Systems and Technology Management; Vol. 14 No. 3 (2017); 309-321
Journal of Information Systems and Technology Management; Vol. 14 Núm. 3 (2017); 309-321
1807-1775
reponame:Journal of Information Systems and Technology Management (Online)
instname:Universidade de São Paulo (USP)
instacron:USP
instname_str Universidade de São Paulo (USP)
instacron_str USP
institution USP
reponame_str Journal of Information Systems and Technology Management (Online)
collection Journal of Information Systems and Technology Management (Online)
repository.name.fl_str_mv Journal of Information Systems and Technology Management (Online) - Universidade de São Paulo (USP)
repository.mail.fl_str_mv ||jistem@usp.br
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