The Diffusion of Innovative Practices in the Service Sector - Evidence from British Establishments
46 Pages Posted: 12 Dec 2008
Date Written: December 11, 2008
In this paper we explore the state of adoption of four sets of management practices in the UK. A simple decision model illustrates how the existence of synergistic gains can influence their adoption decision, while an index of intra firm diffusion summarises the intensity of their use and the extent of their complementary effects. By using a sample of 1238 UK firms present in the WERS dataset we show that the there exist synergistic effects from the joint adoption. We also show that significant differences exist between manufacturing and service sector in both their adoption patterns and their main drivers.
Keywords: Intra-firm diffusion, Complementarities, Management Practices, Innovations
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