Existing workflows and partner participation in shared technology adoption
This paper explores how a partner's satisfaction with its existing workflow can diminish its incentive to adopt shared technology, thereby reducing the expected benefits for the focal organization and highlighting the critical role of interorganizational dependence in technology adoption decisions.
Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer
When companies try to work together using new technology, they often run into a problem that has nothing to do with the technology itself. Imagine a group of neighbors trying to build a shared garden. Even if the plans are perfect and the tools work, the project fails if one neighbor refuses to plant their section because they are perfectly happy with their current, untended lawn. In the world of business, this is the challenge of shared technology adoption. Organizations rarely adopt new systems in isolation; they need partners, suppliers, and customers to participate for the system to work. The decision to adopt is not just about whether a new tool is better than an old one, but whether the people who need to use it alongside you have a good reason to change their own habits. If a partner is already doing their job well with their current methods, they may see no benefit in switching, and without their switch, the new system cannot deliver the promised value to anyone.
This is the central puzzle explored by Kevin McDermott, a researcher at Wilfrid Laurier University in Canada. He investigated why shared technology projects, specifically those involving blockchain—a type of digital record book that multiple organizations can access and update together—often stall or fail. The study does not focus on the technical complexity of the code or the security of the data. Instead, it looks at the human and organizational side of the equation: how a company's satisfaction with its current way of working influences its willingness to join a new digital network. McDermott argues that the success of a new system often depends less on the organization trying to implement it and more on the existing workflows of the partners it relies on. If a partner is already efficient and satisfied, they have little incentive to change, and their refusal to change can block the benefits for everyone else.
To understand this dynamic, the researcher conducted two rounds of surveys in 2021 and 2022, reaching out to professionals in Canadian supply chains through industry associations. The surveys asked participants about their familiarity with blockchain, whether their organizations had used it, and the reasons behind their decisions to use or ignore the technology. The study gathered responses from individuals, including directors, managers, and analysts, and analyzed 216 written entries explaining why organizations chose not to adopt the technology. The findings revealed a clear pattern: many organizations were not rejecting the technology because it was broken or too expensive, but because their partners had no reason to change. A 2022 respondent noted that using the technology without partners would be less effective than their current methods. Another pointed out that their existing electronic systems were already secure and efficient, so there was no urgent need to replace them.
The core discovery of the paper is that a partner's contentment with their current process can act as a silent barrier to innovation. When a company proposes a new shared workflow, it usually expects to save time or reduce errors. However, if a necessary partner, such as a shipping carrier or a supplier, is already performing that task reliably with their existing system, they see little value in adopting the new one. They are not refusing to help out of malice or stubbornness; they are simply making a rational calculation that the new system offers no improvement over what they are already doing. This creates a difficult situation for the company trying to lead the change. They cannot force the partner to switch, and without the partner's contribution, the new system cannot function as intended. The study suggests that the value of a shared technology is not just a property of the technology itself, but a result of the combined willingness of all participants to change their routines.
The research also highlights that simply inviting more people to join the network does not always solve the problem. If a specific task requires a unique contribution from a specific partner—like a customer confirming they received a shipment—no amount of other participants can replace that missing piece. The study distinguishes between contributions that can be easily swapped out, like a generic verification service, and those that are essential and tied to a specific relationship. When the missing piece is essential and the partner has no reason to change, the project stalls. The paper proposes that managers need to look beyond their own organization's needs and evaluate whether their partners have a genuine incentive to participate. If a partner is already doing a good job, the proposing company must find a way to offer them a benefit that outweighs the effort of changing, or they must redesign the workflow to reduce the dependency on that specific partner.
McDermott's work does not claim to have solved the problem of technology adoption, nor does it present a mathematical formula for success. The surveys provided exploratory evidence, offering a snapshot of the conditions that managers face rather than a definitive test of every possible scenario. The data showed that while many organizations were curious about blockchain, a significant number were unsure about its value or felt that their current systems were adequate. The study suggests that the path forward requires a deeper understanding of the ecosystem. It is not enough to build a better tool; one must also understand the landscape in which that tool will be used. If a neighbor is happy with their lawn, the gardener must either convince them that a new garden is worth the effort or find a different way to achieve the shared goal. In the complex web of modern supply chains, the willingness of one partner to change is often the single most important factor in whether a new technology succeeds or fails.
Drowning in papers in your field?
Get daily digests of the most novel papers matching your research keywords — with technical summaries, in your language.