Diffusion of innovations, TOE framework, inter-firm diffusion, intra-firm diffusion.

This paper investigates the issue of diffusion research focused on diffusion and adoption models at firm level. Diffusion theories are aimed at exploring issues as how, why and with what intensity there are new knowledge, innovations, skills and technological changes spread. The purpose of this article is to analyse diffusion processes and describe inter-firm and intra-firm diffusion and differences between them. In this article there is a theoretical review of IT adoption models at the firm level stated, and factors that influence IT adoption and diffusion in each of them. Most empirical studies are derived from the DOI theory and the TOE framework, but to achieve better understanding of the IT adoption phenomenon, it is important to combine more than one theoretical models.DIFFUSION AND ADOPTION MODELS AT THE FIRM LEVEL
Abstract
The paper focuses on approaches in diffusion research aimed at diffusion and adoption models at the firm level. Diffusion theories focus on examining how, why, and with what intensity new knowledge, innovations, skills, and technological changes are spread. The purpose of the paper is to analyze diffusion processes and describe inter-firm and intra-firm diffusion and the differences between them. A theoretical overview of IT adoption models at the firm level is provided, along with factors that influence IT adoption and diffusion within them. Most empirical studies are based on the DOI theory and the TOE framework, but for a better understanding of phenomena associated with IT adoption, it is necessary to combine various theoretical approaches.
1. INTRODUCTION
Technology diffuses slowly both across and within countries resulting in significant lags between the time of invention and the time when a technology is initially used in a country. Even when a technology has arrived in a country, it takes years and decades before it has diffused to the point of having impact on productivity. This leads us to study why technology diffuses slowly, and what explains cross-country differences in its speed of diffusion.
The effects of innovation on economic development were first systematically studied by Schumpeter (1934), who stated that innovative activities by firms often require costly and time-consuming processes in order to gain competitive advantages. According to Schumpeter, competition is primarily a process of the creation and diffusion of new knowledge within the economic system under conditions of rivalry.
2. DIFFUSION PROCESSES
Empirical studies on technology adoption consider adoption units (e.g. countries, cities, or firms) as independent. (…)

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