Desision-Making Process when Adopting or Rejecting Innovation in Small Firms

Carolina Felton

Student thesis: Master thesis


The decision-­making process that an organization needs to go through when deciding whether to adopt or reject an innovation can vary depending on the type of company. It is very important to differentiate small from large organizations when talking about their adoption of innovation process. Each one of them has different structural and managerial characteristics that makes them act differently through the process of decision-­making. In the present research I am going to focus solely on small firm decision-­making process and for the empirical research I am taking a single-­case study of a Danish IT start-­up company called Comundu, which will be considered as the innovation who is entering the hostel market. Yet, for the theoretical part the results will be generalized to small firms because of the lack of literature on the hostel industry. While adoption of innovation in small firms is gaining momentum, little is still known about the motives and factors that influence the small firm decision-­makers when getting immerse in this type of decisions. This study is an attempt to understanding these players and the factors that they take into account when an innovation decision needs to be make. Therefore, a total of 15 interviews where conducted with hostel managers from eight different hostels located in eight different countries around the globe. In order to have a clear focus when conducting the interviews, questions were based on the five main hypotheses of this research, which are: 1) The decision-­making process is influenced by their social network, 2) Decision-­makers of small firms are not only driven by economical goals, 3) Perceived Ease of Use is a factor that influence the decision-­making process, 4) Perceived Usefulness is a factor that influence the decision-­making process, and 5) Innovations that can be tested during the decision-­making process are likely to be adopted more rapidly. After collecting and analysing the data very interesting findings are presented with all of the hypotheses being accepted.

EducationsMSc in Advanced Economics and Finance, (Graduate Programme) Final Thesis
Publication date2015
Number of pages99