Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Adoption and Diffusion Speed of New Technology with Network Externality in a Two-level Supply Chain : An Approach to Relative Factors in Buyer-Supplier Relationships

네트워크 외부효과를 고려한 두 단계 공급체인에서의 신기술 도입과 확산속도에 대한 연구 : 구매자-공급자간 관계 요인에 대한 모형

  • Choi, Daeheon (College of Business Administration, Kookmin University)
  • Received : 2013.04.01
  • Accepted : 2013.08.04
  • Published : 2013.09.30
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Abstract

This paper develops a model to predict the adoption and level of usage of network technology in a two-level supply chain with buyer-supplier relationships. A firm's adoption of a new technology depends not only on its own beliefs of the new technology's costs and benefits, but also on the adoption decisions of other firms in the supply chain. A model first analyzes an individual supplier's decision about a new technology adoption considering with multiple suppliers and buyers. Individual suppliers' decisions are aggregated with a population model to project how new technology diffuses across the supply chain and examine the pattern of diffusion process. This study found that as more firms adopt in initial periods, the total amount of information to the potential adopters in the population increases, and then the number of firms persuaded by the information increases as the process moves up the distribution of adoption process. We consider three factors influencing the diffusion speed of the new technology in a supply chain network : mean benefits, cost sharing, and information provision. This study examines how such factors affect the reduction of threshold levels, which implies that reductions in threshold levels have an aggregate effect by accelerating the rate of adoption. In particular, we explore relationship factors available in practice in a buyer-supplier relationship and numerically examines how these relationship factors contribute to increase the diffusion speed of the technology in a two-level supply chain.

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References

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