Abstract

Many studies report organizations “follow the bandwagon” when adopting new technology, but few studies have explored whether different organizations have different responses to the bandwagon. This study asserts that positive performance experience and technology investment similarity influences an organization’s interpretation of the bandwagon, leading to different responses. This study uses the adoption of new technology in hospitals as a sample frame and adopts a longitudinal research design. The results confirm that the bandwagon has positive influence on new technology adoption. In addition, positive performance experience positively moderates the effects of bandwagon on new technology adoption; technology investment similarity, negatively moderates the effects of bandwagon. This study elaborates the understanding of the impacts of the bandwagon on organizations’ actions.

Key words: New technology adoption, bandwagon effect, positive performance experience, technology investment similarity.