Technology Adoption with Reference to Embedded Systems

Embedded Systems (ES) are information processing systems consisting of a hybrid combination of hardware and software components integrated into a technical environment. Controlling, regulating and monitoring a system under real-time requirements to achieve efficiency, reliability and specificity is their primary object. The employment of ES in a wide-ranging application field, e.g. automotive, aviation, telecommunications as well as machinery and plant engineering, underlines their essential technological importance. Enterprises operating in such a competitive high tech market have to cope with the establishment of new technologies to gain and maintain competitive advantage. This is principally related to two main tasks: the adoption and diffusion of new technologies. Consequently, our paper analyses the process of how new technologies are approved and rejected in companies operating within an ES-oriented environment. The research method chosen for our study are semistructured interviews which have been conducted with 48 experts from several industries in the European Metropolitan Area of Nuremberg (EMN), Germany. The compiled data has been subject to a qualitative content analysis, which is an appropriate method to extract relevant information from text material following a predefined scheme. The results show that technology adoption as well as diffusion play an important role for ES-oriented enterprises. Regarding information diffusion, seven methods constituting both onand offline channels are employed. Moreover, it is significantly influenced by persons, networks, suppliers and customers, whereas conflicts between individuals, contrary to theory, play a minor role. In addition, there exists a range of eleven different reasons for technology rejection, e.g. costs, own developments and a missing customer value. The findings of this study are highly relevant for the analysis of technology adoption processes as part of innovation, technology and knowledge management which are critical for being competitively successful in a high tech market. This study concerning technology adoption with reference to ES serves as a basis to further analyse the transformation of ES-technologies into marketable products and/or services, all associated management decisions as well as the transferability of our results to other technological fields. Keywords—Embedded Systems, Technology adoption, Technology diffusion, Qualitative content analysis, Technology and knowledge management, Innovation management C. Arnold, D. Kiel, C. Baccarella, K. -I. Voigt, D. Hoffmann Friedrich-Alexander University Erlangen-Nurnberg (FAU) Industrial Management Germany I. Problem outline Globalisation and subsequent increase of competition, innovation in telecommunications, increasing and changing customer expectations as well as technological changes are revolutionising markets [1][2][3][4]. Among others, these factors trigger new technological developments in companies serving as a basis for competitiveness and competitive advantage [5]. Consequently, the implementation of new developments is crucial for the long term continuity and strategic orientation of a company [6]. When it comes to technological change, Embedded Systems (ES) play an important role. The ES market experiences steady growth and is considered to be the most important application area of information and communication technology in the upcoming years. Its global volume is estimated at 60 billion euros, in other words about 100 times the desktop market [7][8][9]. ES are “information processing systems embedded into enclosing products” [10], i.e. microcontrollers to monitor, control or assist the operation of equipment, machinery or plant [11]. By this means, they interact either directly with their environment via communication devices or indirectly via sensors that capture data such as temperature or movement, as well as with actors that transform those data into action [7]. The number of ES integrated in a product varies from at least one to ten in simple consumer products to several hundreds in complex professional systems so that an average household utilises easily 50 ES [8]. Their importance manifests in a considerably increasing number of fields of technological applications, e.g. automotive, electronics, avionics, railways, telecommunications, health sector, security, consumer electronics, fabrication equipment, smart buildings, logistics, robotics and military applications [9]. To give a concrete example, airbags, braking systems or power locks are nowadays inconceivable without ES [7]. In the following section, the theoretical basis concerning the adoption of technologies, the diffusion of knowledge and information as well as reasons for the rejection of technologies is provided as well as the research questions are derived. After that, the methodology applied, i.e. expert interviews and qualitative content analysis, is outlined. It is followed by the constitution of the (ES-specific) empirical findings in terms of methods and the influence of persons, networks, suppliers, customers and conflicts with reference to knowledge spreading as well as reasons for the rejection of novel ES. Finally, the paper is topped off with concluding statements.