Paper

DiffuNET: The impact of network structure on diffusion of innovation

Liu, B., Madhavan, R., Sudharshan, D. (2005)

European Journal of Innovation Management; Vol. 8; No. 2; pp. 240-262
DOI: 10.1108/14601060510594701
Purpose – To provide an explicit model to address the relationships between the structural characteristics of a network and the diffusion of innovations through it. Further, based on the above relationships, this research tries to provide a way to infer diffusion curve parameters (innovation coefficient and imitation coefficient) from network structure (e.g. centralization). Design/methodology/approach – Based on the network and innovation literatures, we develop a model explicitly relating the structural properties of the network to its innovation and imitation potential, and in turn to the observed diffusion parameters (innovation and imitation coefficients). We first employ current theoretical and empirical results to develop postulates linking six key network properties to innovation and imitation outcomes, and then seek to model their effects in an integrative manner. We argue that the innovation and imitation potentials of a network may be increased by strategically re-designing the underlying network structure. We validated the model by searching the published empirical literature for available published data on network properties and innovation and imitation coefficients. Findings – We validated the model by searching the published empirical literature for available published data on network properties and innovation and imitation coefficients. The results reported from various relevant research papers support our model. Practical implications – This research shows that the innovation and imitation potentials of a network may be increased by strategically re-designing the underlying network structure; hence, provide guidelines for new product managers to enhance the performance of innovative products by re-design the underlying network structure.


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