Small Business Alliances: Professional Networks and Innovation Adoption (original) (raw)

Social network theory and new institutional theory have suggested that in some industries organizations are embedded in networks of interacting individuals who escape the iron cage of institutional practice by creating webs of informal relationships connecting relatively homogeneous units. In this study, we examined the importance of informal relationships within industry groupings of small medical practices for the adoption of new technology. Analysis showed that the capacity to recognize and quickly adopt promising new technology depends not only on ensuring that key personnel receive up-to-date training and continuing access to new scientific developments, but also on the social networking skills of key decision makers.