Question

When new technologies arrive, only a few customers adopt such technologies. A large number of customer remain sceptical about the product. The cost of the new technology remain high. As a result it take long time for the businesses to focus on the new technology until the dominant design comes and the price become affordable by the large number of consumers. From your point of view, what might be the reasons established firms might resist adopting a new technology.

Answer 1

When a technology's performance is plotted against the amount of effort and money invested in the technology,it typically shows slow initial improvement,then accelerated improvement,then diminishing improvement. Performnance improvement in the early stages of a technology is slow beacause of the fundamentals of the technology are poorly understood. Great effort may be spent exploring different paths of improvement or different drivers of the technology's improvement. If the technology is very different from previous technologies,there may be no evaluation routines that enable researchers to assess its progress or its potential. So firms are often hesitate to switch.
Main reasons to avoid new technologies may lie in the complexity of the knowledge underlying new thechnologies, and in the development of complementary resources that makes those technologies useful. Although some of the knowledge necessary to utilize a new thechnology might be transmitted through manuals or other documentation,other aspects of knowledge neccessary to fully realize the potential of a technology might be built up only through experience. Some of the knowledge about the technology might be tacit and require transmission from person to person through extensive contact. Many potential adopters of a new thechnology will not adopt it until such knowledge is available to them,despite their awareness of the technology and its potential advantages.
In shortly, Some established firms may not adopt a new technology because of the firm may be focused on improving their current technologies and may not realize that there are newer devices being adopted. The firms may feel that the technology is too complex for them to take the time and cost for them to learn it. For some firms it costs them more in money and time to secure other resources that are needed to operate the new technology.