Diffusion of innovative technology in US oil and gas industry: An empirical study

Abstract

This paper presents survey results validating the theory of diffusion of innovation (DoI) (Rogers, 1962, 2003). We find that complexity, trialability, and observability exhibited correlation with innovation diffusion while the others do not. Innovation and technology have been long considered important drivers of organisational success. They are examined in the US Oil and Gas (O&G) industry. Rogers' (1962, 2003) theory of DoI is used in identifying and operationalising key variables that affect DoI. It broadens understanding of how the industry has responded to the presence of multiple, important new technologies and how the diffusion of these technologies can be explained by the application of the DoI model. Using primary data, the current study empirically tests DoI in the context of today's US O&G industry. The contribution of the current study to both researchers and practitioners, limitations, as well as suggestions for future studies are also provided.