Abstract

Creating and adopting innovations is important for the development of firms and whole economies. Several theoretic approaches are therefore dealing with innovation adoption and diffusion and the motivation of firms to innovate. Diffusion of Innovation theory explains the effect of innovation characteristics on innovation adoption and diffusion, the Resource-based View of the Firm focuses on the use of slack resources and their influence on innovation while the Behavioral Theory of the Firm predicts problemistic search as motivation for innovative maneuvers. This paper investigates how the use of slack resources and problemistic search differentially impact the effect of innovation characteristics on innovation adoption of IT service providers. The results indicate that firms’ different motivations to innovate differentially moderate the effect of innovation characteristics on innovation adoption.

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