To Convert or not to Convert to the Upgraded Version of de-facto Standard Software

Hee Dong Yang, Christoph Karon and Sora Kang

No 2012-02, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: This work extends the innovation diffusion theory to understand the causal relationship among influential factors on the adoption of the upgraded software. Especially, this study focuses on the de-facto standard software (e.g., Microsoft Office) that competes against its previous versions. This paper makes three unprecedented contributions. First, we re-categorize the eight factors in innovation diffusion theory into Kano’s (1984) three factor framework on customer satis-faction, and develop the causal relationship among these factors. Second, we distinguish two different dependent varia-bles, positive attitude (on behalf of adopting the new version) and negative attitude (for staying put with the old version), and include them together in our research model. Inhibitors and facilitators are well distinguished in our study and their respective causal models are suggested. Our results demonstrate that own experiences through triability and demonstrat-ed results have significant influence on compatibility and ease of use, while social influences caused by visibility and image relate significantly to compatibility, relative advantage, and monetary value. We also find that negative attitude is influence by the lack of compatibility and ease of use, whereas positive attitude is promoted by relative advantage and monetary value.

Keywords: Innovation diffusion theory; de-facto Standard; Kano's three factor model on customer satisfaction (search for similar items in EconPapers)
Pages: 21 pages
Date: 2012-08
New Economics Papers: this item is included in nep-ino
Note: August 2012
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