Recently technological trend can be characterized as “digital convergence.” Compatibility is one of the most important thing in high-technology markets. The objectives of the study are to build a model of perceived attributes of innovation, expected network externalities, and PDA (Personal Digital Assistant) adoption and to test this model. Data were collected from office workers and students through questionnaires and then statistically analyzed using factor analysis and path analysis. Key findings of the study are as follows. First, perceived relative advantage and expected installed customer base are substantially related to the attitude toward PDA adoption and intention to PDA adoption. Second, expected upgradability is substantially related to the attitude toward PDA adoption. Third, the intention to PDA adoption is explained by the model of expected network externalities and perceived attributes of innovation better than by the model of only perceived attributes of innovation.
Operating systems sub-categorize PDAs into the ones with Windows CE and the ones with Palm OS. The intention to sub-categorized PDA adoption is also substantially related to perceived relative advantage and expected installed customer base. We analyze the mean differences between PDA with Windows CE and PDA with Palm OS. PDA with Windows CE has higher evaluation in attitude toward sub-categorized PDA adoption, intention to sub-categorized PDA adoption, expected installed customer base, expected component variety, perceived ease of use, perceived relative advantage than and PDA with Palm OS.
The followings are major implications of the study which is related to the companies (involved PDA manufacturer) in high technology markets. First, the promotion messages at the point of new product introduction should contain both the benefit of product and expected installed customer base. The message example is “in the future many people buy and use this innovative product.” Second, showing the usage of the high-tech product (ex. PDA) though mass media appeal more strongly to potential buyers. Such a promotion method will make the innovative product highly observable. The firms should make it possible for potential adopters to come to the shop and to use the innovative product (ex. PDA) for trial. Third, one of the key success factors in high technology market is to expand the size of the customer network. So, upgradability, component variety, inter-technology compatibility is important things in the customer network markets where the network externality is a important success factor.
