Micro-models of adoption of innovations have provided contradictory results regarding the impact of organizational characteristics upon "innovativeness." We suggest that these differences can be reconciled by explicitly incorporating the notion that firms differ in terms of their Opportunities for Adoption. We propose a modeling approach to capture the probability of adoption as a function of opportunities for adoption, innovativeness and past adoptions. The model is tested on a sample of 8,000 firms in the context of the adoption of personal computers. The results are compared with those obtained from a conventional logit model. Split-sample validation attests to the robustness of the results from the two-stage model.
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