Business Studies Paper


Please review the article on Wikipedia for “Diffusion of Innovations”:

When reviewing the Diffusion of Innovation Theory, do so in the context of new innovations in Informatics. This could possibly be a new technology or a new technique for doing something. Review with the intent to underscore the idea that valid theories should be applicable in multiple situations and should help with the formulation of research hypotheses. Then, provide your example on a Word document.

Explain how you learned about this new innovation and at what Stage of Adoption you currently see yourself when considering the implementation of this new innovation. If you haven’t reached stage five, Confirmation, do you see yourself reaching that stage and if so, why? Why might you reject or discontinue use of the innovation?

Only considering the specific example of innovation you provided and based on the characteristics of Innovators, Early Adopters, Early Majority, late majority or laggards; explain in which category you would see yourself belonging for this innovation. Can you think of other examples of innovations where you would have fallen in a different category? If so, explain which category and what was the innovation?


Diffusion of Innovation Theory

            Diffusion of innovation theory provides a framework for explaining the rate at which new ideas and technology spread. It explains the trends at which technology spreads in a social system. According to the theory, there are four factors that determine the spread of a new idea (Mustonen‐Ollila & Lyytinen, 2003). They include innovation, communication channels, time, as well as a social system. The theory provides that the spread of new technology is determined by the number of people who will adopt it. A new idea or technology that has been widely adopted becomes self-sustaining. The adopters can also be categorized into different groups, including innovators, early adopters, and early majority in that order; they are followed by late majority, and laggards (Mustonen‐Ollila & Lyytinen, 2003). The explanations given by diffusion of innovation theory are applicable to various situations in life. The development of a mobile application Uber that allows for people to get taxis over their cell phones is an example of a new innovation that follows the principles of the diffusion of innovation theory. The use of the service has been widely adopted in various parts of the world. It has helped in changing the mode of operation of the taxi industry.


            The Uber application has undergone the various stages that determine the spread of a new innovation or technology. It began by innovation of the application before it became spread through communication channels. The success of the service has been greatly defined by human capital. I first learned of the availability of the service through a social media advert. I then gained interest in how the mobile application works to help a person book a taxi. The popularity of the application soared within a short time due to the ease of use. The prices that are offered for taxi charges through the platform are relatively cheaper compared to other taxi operators. One is able to book a taxi at the comfort of their home and the driver will pick them at their doorstep. The current social system has favored the spread of the service to make it significant in the world. It has helped people to avoid the hustle of moving to taxi bays and waiting for a vehicle. The world has developed to become a place where people are conscious about time and the quality of service. The efficiency of the service and the current social system has enabled the service to be adopted within a short time. The advertisements on Uber can be found on social media channel, billboards, television channels, and radios.

            At the moment, am at the implementation stage of the service. I use the service occasionally. The service is convenient to use at night when there are few vehicles on the road. A customer is billed based on the time taken and the distance of the journey. Spending more time in traffic jam implies that the cost will go up. I do not see myself reaching the confirmation stage. I will continue using the service when it is convenient for my situation. At other times, I will use the train service because it is cheaper and faster.

            In the use of Uber service, I am at the stage of early adopters. After learning about the service, I considered the advantages and disadvantages and then started using it. Apart from the Uber service, another new application is the Airbnb that offers an online hospitality service. In using the Airbnb service, I am at the stage of late majority. I have started using the service after getting opinions from other people who have used it.


Mustonen‐Ollila, E., & Lyytinen, K. (2003). Why organizations adopt information system process innovations: A longitudinal study using Diffusion of Innovation theory. Information Systems Journal13(3), 275-297.

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