Article: Methods for reducing buyer perceived risk related to the adoption of technological innovations Journal: International Journal of Procurement Management (IJPM) 2014 Vol.7 No.1 pp.71 - 84 Abstract: Industrial technology suppliers marketing and selling technological innovations need to be able to reduce buyer perceived risk. Innovation buyers face high perceived risks, especially in the initiation and implementation phases of innovation adoption. We deliver insights on risk reduction tools by examining the case of a monitoring system innovation designed to enhance process efficiency in an electrolytic copper refining process. We examine the case from both the buyer and seller perspective and propose concrete methods that sellers can employ to reduce buyer perceived risk. At the initiation phase, we illustrate a life cycle-based tool for performance assessment. In the implementation phase, we identify three key supplier processes namely adaptation, championing, and cooperative implementation that may facilitate the buying firm's successful implementation of the innovation. The findings provide more in-depth understanding about the role of risk reduction in the marketing and procurement of technological innovations. Inderscience Publishers - linking academia, business and industry through research

Title: Methods for reducing buyer perceived risk related to the adoption of technological innovations

Authors: Samuli Patala; Anne Jalkala; Risto Soukka

Addresses: Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20 FI-53851 Lappeenranta, Finland ' Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20 FI-53851 Lappeenranta, Finland ' Department of Environmental Engineering, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland

Abstract: Industrial technology suppliers marketing and selling technological innovations need to be able to reduce buyer perceived risk. Innovation buyers face high perceived risks, especially in the initiation and implementation phases of innovation adoption. We deliver insights on risk reduction tools by examining the case of a monitoring system innovation designed to enhance process efficiency in an electrolytic copper refining process. We examine the case from both the buyer and seller perspective and propose concrete methods that sellers can employ to reduce buyer perceived risk. At the initiation phase, we illustrate a life cycle-based tool for performance assessment. In the implementation phase, we identify three key supplier processes namely adaptation, championing, and cooperative implementation that may facilitate the buying firm's successful implementation of the innovation. The findings provide more in-depth understanding about the role of risk reduction in the marketing and procurement of technological innovations.

Keywords: perceived risk; innovation adoption; innovation implementation; life cycle profit assessment; buyer risks; technological innovation; risk reduction; monitoring systems; process efficiency; electrolytic copper refining.

DOI: 10.1504/IJPM.2014.057868

International Journal of Procurement Management, 2014 Vol.7 No.1, pp.71 - 84

Published online: 30 May 2014 *

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Title: Methods for reducing buyer perceived risk related to the adoption of technological innovations

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