This paper utilizes the diffusion of innovation framework to discuss factors affecting adoption of telemedicine. Empirical and anecdotal findings are organized across five attributes affecting innovation adoption rates for the following four adopter groups: physicians, patients, hospital administrators, and payers. A discussion of the implications is included.

Most recent work in the area of new product development has been of a theoretically prescriptive basis, ignoring, to a large degree, the current state of affairs in US corporations. The study examines, on a comparative basis, consumer and business products organizations, practices being utilized to guide the development process and key factors influencing the success/failure of the process. Results from an empirical study reveal that: (1) there is no one best means to structure the process; (2) top management commitment to and support of the process is a critical factor; (3) knowledge of markets and customers remains elusive; and (4) more similarities than differences exist between the practices undertaken by and the factors influencing success/failure in consumer versus business products organizations.

<p class="MsoNormal" style="text-align: justify; margin: 0in 37.8pt 0pt 0.5in;"><span style="mso-bidi-font-style: italic;"><span style="font-size: x-small;"><span style="font-family: Batang;">The authors test a model that suggests that new product success is a function of the relational norms and integration between marketing and R&amp;D.<span style="mso-spacerun: yes;">&nbsp; </span>Integration and norms are influenced by formal controls such as centralization and formalization.<span style="mso-spacerun: yes;">&nbsp; </span>The findings from a survey of 152 product managers demonstrate the importance of promoting collaborative relationships between R&amp;D and marketing. The study found positive relationships between collaborative relationships and the creation of successful new products.<span style="mso-spacerun: yes;">&nbsp; </span>The study also found that such relationships can be fostered by decentralizing decision making and clarifying the roles of new product development personnel.</span></span></span></p>

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PurposeThis paper aims to examine the role of network effects (defined as increased utility for users of a technology that occurs when adoption increases among other users) in the adoption of electronic medical records (EMR) systems. EMR systems, which have experienced slow adoption rates, promise to improve the efficiency of the healthcare system by facilitating information exchange among physicians caring for the same patients.Design/methodology/approachSurvey responses from physicians are used to test several hypotheses. The authors are interested in how market level EMR adoption was related to physician adoption intentions. The authors also test the “strong ties” notion of network effects by examining whether EMR adoption among generalists, and specialist physicians, had differing influences on adoption intentions in a given market.FindingsSupport for network effects is found; each one unit increase in market‐level EMR adoption is associated with a significant increase in overall physician adoption intention in that market. Secondary analyses suggest adoption of EMRs by specialists is significantly predictive of generalists' adoption intentions in a given market. However, as predicted, EMR among generalists does not influence other generalists' intentions; nor does EMR adoption by a specialists influence other specialists' intentions.Research implicationsNetwork effects play a role in the EMR adoption among physicians. Decision‐makers wanting to influence adoption should target defined market segments in an effort to build a critical mass of adoption then move to adjacent segments once network effects take hold.Originality/valueThis paper applies network effects theory to help explain the suboptimal adoption rates of an important healthcare technology.