ORGANIZATIONS’ BARRIERS TO DISRUPTIVE INNOVATIONS:            EXAMINING E-BOOK ADOPTION BY              GERMAN BOOK PUBLIS...
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Poster - Organizations’ Barriers to Disruptive Innovations: Examining e-book adoption by German book publishers.

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Nölle, I., Buschow, C. & Schneider, B. (2012). Organizations’ Barriers to Disruptive Innovations: Examining e-book adoption by German book publishers. Paper presented at 62th Conference of the International Communication Association, Phoenix, Arizona/USA, 24-28 May 2012.

Published as: Buschow, C., Nölle, I. & Schneider, B. (2014). German Book Publishers' Barriers to Disruptive Innovations: The Case of E-Book Adoption. Publishing Research Quarterly, 29(1). http://ddx.doi.org/10.1007/s12109-014-9342-y

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Poster - Organizations’ Barriers to Disruptive Innovations: Examining e-book adoption by German book publishers.

  1. 1. ORGANIZATIONS’ BARRIERS TO DISRUPTIVE INNOVATIONS: EXAMINING E-BOOK ADOPTION BY GERMAN BOOK PUBLISHERS Isabelle Nölle, Christopher Buschow & Beate Schneider Isabelle.Noelle@ullstein.de Christopher.Buschow@ijk.hmtm-hannover.de Beate.Schneider@ijk.hmtm-hannover.de http://www.ijk.hmtm-hannover.de/en1. Background and Aims Disruptive innovations driven by technology evoke change in the German book industry: to successfully cope with these new market circumstances, publishers need to adopt innovations, e.g. implement e-books into their product portfolio. Yet, despite being the second biggest book market worldwide, in 2010 only 1.2 percent of all German books were published electronically (Müller et al., 2010). This leads us to investigating the factors that determine if publishing companies decide against entering the e-book market: the barriers to disruptive innovations.2. Research Question 3. Method RQ: What factors determine if German book publishing companies decide in Survey & Sample: We conducted a standardized online survey of decision favor or against entering the e-book market? makers in German publishing houses from May to June 2011. Based on the register of the International Standard Book Number (ISBN), we contacted a Taking into account, that innovation adoption may be influenced by various factors random sample of 1,679 book publishers based in the German language speaking (Fig. 1), we specified the RQ with regard to different perspectives asking book market (Germany, Austria and Switzerland) via personalized e-mails. After Which factors from the eliminating incomplete and unusable responses 242 questionnaires were included SRQ1 SRQ2 SRQ3 in the analyses – 197 of them representing the answers of decision makers. Individual-Micro Organizational-Meso Environmental-Macro Perspective Perspective Perspective determine if German book publishing companies decide in favor or against entering the e-book market? SRQ4: What relative influence does each factor have as a predictor for the decision of German publishing companies whether to enter or no to enter the e-book market? Individual-Micro Organizational-Meso Environmental-Macro Fig. 2: Benchmark of sample structure Perspective Perspective Perspective The questionnaire comprised 25 questions addressing the micro-, meso-, and Personal Aspects Resources Communication Stakeholders macro-perspective (Fig, 1). The theoretical assumptions were tested against  attitude towards e-book  financial  market research competitor’s pricing empirical evidence on the basis of confirmatory factor analysis (Kim & Mueller,  support of corporate  technological  internal communication strategy e-book strategy  communication within target‘ groups’ affinity 1978; Brown, 2006; Harrington, 2008). Later, the data was aggregated using unit  innovativeness Knowledge the industry towards e-books value indices whose internal consistency was measured by Cronbach’s Alpha (α).  role as a counselor for  in digital publishing  communication within authors’ growing e-book topics  in management techniques co-operation partners autonomy The sample of German publishing houses could be devided into adopters (87%,  professionalism of process conduct of hardware n=210) and non-adopters (13%, n=32) of e-books (Damanpour & Wischnevsky, Socio-Demographics management Organizational Structure industry  age  size 2006; Damanpour & Schneider, 2006). As Fig. 2 shows, our sample achieved –  years of service with Culture  age Market with regard to a representative GfK sample – an appropriate representation of the the company  corporate culture of market stability innovation German publishing industry.  fit of e-book strategy with corporate culture  corporate change culture Data Analysis: We conducted a linear discriminant analysis (LDA) aiming to predict factors that have the power to discriminate between the two groups ofFig. 1: Conceptual framework adopters and non-adopters, and, thus, reveal the drivers and barriers to e-bookSource: Rogers & Shoemaker, 1971; Kirton, 1976; Kimberly, 1978; Fennel, 1984; Bantel & Jackson, 1989; King, 1990;Goldsmith & Hofacker, 1991; Scott & Bruce, 1994; Rogers, 1995; West & Anderson, 1996; Wejnert, 2002; Kirton, adoption. Predictor variables were the 25 items derived from theoretical2003; Rogers, 2003; Venkatesh et al., 2003; Damanpour & Schneider, 2006; Damanpour & Schneider, 2008; Marcati, assumptions (Fig. 1). The discriminant function revealed a significant associationGuido & Peluso, 2008. between the groups and 16 predictors, accounting for 58 percent of variation in the grouping variable (squared canonical correlation coefficient, see Res. 3). The cross-validated classification showed that 95.5 percent of the cases had been4. Results classified correctly. Micro Perpective: The Manager‘s Meso Perpective: Organizational… / Organizations’… Functions at Group Centroids … attitude towards e-books .581*** … communication within the industry .320*** Adopters (n=170) .450 … support of e-book strategy .358*** … fit: E-book strategy and corporate culture .162*** Non-Adopters (n=27) -3.039 … role as counselor for e-book topics .068*** … communication with cooperation partners .127*** … innovativeness -.210* … expertise in general management techniques .082** … age - … professionalism of process management .055*** Discriminant Analysis Results … years of service with the company - … financial resources .028* Eigenvalue 1.386 … implementation of market research .011* % of variance 95.5 … expertise in digital publishing -.268*** Canonical correlation 0.762 Macro Perpective: Environment … technological infrastructure - Wilks’ Lamba .419 Growing autonomy of the author .174** … size - Sig. .001 Target groups’ affinity towards e-books -.085** … development stage - Pricing of the competitors -.070** … internal communication - Conduct of hardware producers -.065*** ... corporate change - N=197 after listwise deletion of cases with Market stability - missing data; stepwise linear discriminant … corporate culture of innovation - analysis; Source: own research. Res. 1 - 3: Standardized discriminant function coefficients, adoption of e-books in German publishing companies5. Conclusions Using a survey study we compared various limiting factors and pointed out their impacts on the adoption process. Individual characteristics of the management and a company’s corporate culture strongly predict adoption. Also, organizational communication within the industry and with cooperation partners seems to be critical. The key resource to enabling innovation adoption seems to be information. In detail, the findings support the high relevance of ‘soft’ human and also corporate factors such as feelings and emotions, reported in terms of consumers for example by Rogers (2003), and also culture, shaping norms and beliefs through recursive loops (Giddens, 1984). In any case, changing these may be difficult. Moreover, with regard to the Organizational-Meso Level, the relevance of external communication within the industry and with cooperation partners becomes particularly obvious. Therefor we see some evidence for the necessity of open networks and communities of practice within and across the book industry (understood as (open) spaces where learning with regard to some specific topic takes place) to facilitate the adoption of disruptive innovations. Sources: Bantel, K. A. & Jackson, S. E. (1989). Top Management and Innovations in Banking: Does the Composition of the Top Management Team Make a Difference. Strategic Management Journal, 10 (1), 107-124. Brown, T. A. (2006). Confirmatory Factor Analysis for Applied Research. New York: Guilford Press. Damanpour, F. & Schneider, M. (2006). Phases of the Adoption of Innovation in Organizations: Effects of Environment, Organization and Top Managers. British Journal of Management, 17 (3), 215–236. Damanpour, F. & Schneider, M. (2008). Characteristics of Innovation and Innovation Adoption in Public Organizations: Assessing the Role of Managers. Journal of Public Administration Research and Theory, 19 (3), 495-522. Damanpour, F. & Wischnevsky, J. D. (2006). Research on organizational innovation: Distinguishing innovation-generating from innovation-adopting organizations. Journal of Engineering and Technology Management, 23 (4), 269-291. Fennel, M. L. (1984). Synergy, Influence, and Information in the Adoption of Administrative Innovations. Academy of Management Journal, 27 (1), 113-129. Giddens, A. (1984). The Constitution of Society. Berkeley: University of California Press. Goldsmith, R.E. & Hofacker, C.F. (1991). Measuring consumer innovativeness. Journal of the Academy of Marketing Science, 19 (3), 209-222. Harrington, D. (2008). Confirmatory factor analysis. New York, Oxford: Oxford University Press. Kim, J. O., & Mueller, C. W. (1978). Factor analysis: Statistical methods and practical issues. Newbury Park: Sage. Kimberly, J. R. (1978). Hospital Innovation Adoption: The Role of Integration into External Informational Environments. Journal of Health and Social Behavior, 19 (4), 361-373. King, N (1990). Innovation at Work: The Research Literature. In M. A. West & J. L. Farr (Eds.). Innovation and Creativity at Work (p. 15-59). New York: John Wiley. Kirton, J. M. (1976). Adaptors and innovators: A description and measure. Journal of Applied Psychology, 61 (5), 622–629. Kirton, J. M. (2003). Adoption-Innovation in the Context of Diversity and Change. London: Routledge. Marcati, A., Guido, G. & Peluso, A. (2008). The role of SME entrepreneurs‟ innovativeness and personality in the adoption of innovations. Research Policy, 37 (9), 1579-1590. Müller, C., Spiegel, S. & Ullrich, F. (2010). E-Books in Deutschland: Der Beginn einer neuen Gutenberg-Ära? Düsseldorf: PriceWaterhouseCoopers. Rogers, E. M. & Shoemaker, F. F. (1971). Communication of innovations: A cross-cultural approach. New York: Free Press. Rogers, E. M. (2003 [1962]). Diffusion of Innovations. New York: Free Press. Scott, S. G. & Bruce, R. A. (1994). Determinants of Innovative Behavior: A Path Model of Individual Innovation in the Workplace. Academy of Management Journal, 37 (3), 580-607. West, M. A. & Anderson, N. R. (1996). Innovation in Top Management Teams. Journal of Applied Psychology, 81 (6), 680-693. Wejnert, B. (2002). Integrating Models of Diffusion of Innovations: A Conceptual Framework. Annual Review of Sociology, 28 (1), 297-326. Venkatesh, V., Morris, M. G., Davis, G. B. & Davis, F. D. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27 (3), 425-478.

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