Document Type

Article

Abstract

The statement by Cyert, Simon and Trow [1, p. 237] that “Decision-Making – choosing one course of action rather than another, finding an appropriate solution to a new problem posed by a changing world – is commonly asserted to be the heart of executive activity in business.” holds true still after fifty years although a lot has changed in business from those days. New products are launched more frequently to markets and technological innovations alter structures of competition and disturb equilibrium of markets. These dynamics can pose not only opportunities but also threats for firms, depending upon the timing of adoption. The most innovative companies may gain competitive advantage over competitors by adopting and implementing performance improving technologies. On the other hand, the non-adopters may suffer from the improved performance of the adopters. This paper examines conceptually a process of decision-making on new technology discussing organizational buying behavior approach and innovation adoption approach in regard to general decision-making approach and finally combines these fields in order to conceptualize and understand better the process of decision-making on new technological investment.

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