A Longitudinal Study of the Causes of Technology Adoption and Its Effect upon New Venture Growth

This six-year study of the causes of technology adoption and its effect upon new venture growth explains anomalous past findings that new non-technology based ventures have been slow to adopt technology compared with established businesses. In contrast, I found that new ventures invest early in product design technology and low cost marketing technologies; however, they hold off adoption of production and management information technologies. Thus, timing of adoption depends upon technology type. Similarly, the causes of adoption depend upon technology type. Adoption of all technologies were motivated by technology strategy and competitive threat; however, expected cost savings, customer attraction, and financial resources had varying effects. Adoption of all types of technology caused new venture growth.