The dynamic threshold model of bandwagon innovations: Role of organizational attention and legitimacy

Abstract

Innovations are not always adopted due to their expected economic impact but often due to bandwagon pressure. Fueled by economic uncertainty, these “bandwagon innovations” are adopted once the bandwagon pressure reaches a certain threshold. Existing literature, however, has not examined this threshold’s sources nor considered the effect of a bandwagon adoption decision on threshold. Therefore, building on current knowledge about the bandwagon effect, organizational attention, and legitimacy, this paper develops a theoretical model to help understand the factors affecting threshold and making organizations more or less likely to adopt bandwagon innovations. The novel dynamic threshold model proposed here explains how attention to social or economic factors can affect an organization’s threshold. The model shows that the threshold may change such that an organization may be more likely to adopt a bandwagon innovation after prior resistance or resist one after prior adoption. Implications for organizational decision-makers and future research avenues are also discussed.