The effect of technological adoption on organizational performance: Organizational size and environmental munificence as moderators.

The goal of this study is to provide guidance to managers who must make decisions regarding the adoption of technological innovations. The study was conducted within the context of the hospital industry. Results indicate that while adoption of technological innovations may lead to increased performance for certain hospitals, for large hospitals, and those located in rich environments, medical technology may be a ‘no‐win’ situation. Failure to adopt technology may result in the loss of patients, but adoption may result in increased costs that cannot be recovered due to underutilization.

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