Competitive determinants of technology diffusion in the wood household furniture industry

Adoption of manufacturing technologies have been cited as an important competitive strategy for successful firms. This study assessed the wood household furniture industry for its current level of technology adoption, examined the impact of competitive variables on technology adoption and strategy formation, as well as, characteristics of innovators or early adopters within the industry. The results provide both insight into the technological direction of this industry and factors influencing the adoption of innovations by industrial organizations.

The U.S. wood household furniture industry was surveyed concerning their recent equipment purchases, future purchase plans, and adoption of a list of 21 innovative technologies. Respondents listed recent equipment purchases within the finish machining area of the mill, particularly with automatic controls, as providing them with the most important benefits of increased efficiency and product quality. Respondents indicated that the functional areas of finish machining and the rough mill will receive the majority of new equipment over the next five years with automatic controls increasing in importance over time.

A competitive-policy contingent model of technology adoption was developed and empirically tested. Innovativeness of firms was accessed by the number of technologies adopted from a set developed by industry experts. Empirical results suggest that organizational policy is dependent on the competitive conditions under which it was formed and that policy has an important effect on the innovativeness of an organization. Communication variables (signal frequency, cosmopliteness, and professionalization) were found to exhibit greater direct and indirect effects on innovation than industry structural variables with the exception of firm size.

Characteristics of early adopters were contrasted with those of later adopters of technologies within the furniture industry based upon their adoption of thirteen processing technologies. Early adopters were found to differ significantly from later adopters on firm size, technological expertise, technological progressiveness, opinion leadership, information sources, and cosmopolitanism of the decision making group.

The influence of technology push versus marketing pull strategies on firms was examined in an empirical study. Results of cluster analysis indicate that firms do align themselves along these strategic dimensions and can be contrasted on key characteristics; such as, demographics, company performance and environmental uncertainty.