On the Adoption Decision of Complementary Innovations : Evidence from the Use of Management Practices by UK Establishments

This paper presents a simple profitability based decision model to show how synergistic gains generated by the joint adoption of complementary innovations may influence the firm’s adoption decision. For this purpose a weighted index of intra-firm diffusion is built to investigate empirically the drivers of the intensity of joint use of a set of complementary innovations. The findings indicate that establishment size, ownership structure and product market concentration are important determinants of the intensity of use. Interestingly, the factors that affect the extent of use of technological innovations do also affect that of clusters of management practices. However, they can explain only part of the heterogeneity of the benefits from joint use