INNOVATION DIFFUSION ANALYSIS FOR BIOFUELS AND BIOCHEMICALS

Abstract

Objective

As multi-national firms and governments are increasing the demand for biofuels and biochemicals through policies and incentives the implications of the adoption of these emerging technologies is underexplored.  This research examines the role of sustainability as explored through a traditional view and a Natural Resource Based View and its implications for global supply chain management.

Method

An empirically derived model of innovation adoption for biological resources is presented incorporating Rogers and Shoemaker’s five attributes of innovations using two distinct theoretical lenses:  the “Traditional” and the “Natural-Resource-Based-View” (NRBV) of the firm.

Results

In terms of an overall assessment, the NRBV provides a much more positive view of biofuels as an alternative to fossil fuels.  In the traditional view, fossil fuels indeed appear to be more compatible, less complex, and much more familiar.  Our analysis here provides an important input into market intelligence for industries considering a foray into the biofuels sector.  Early adopters in this case will help to set the stage, and also be able to drive regulatory mandates and competitive advantage for biofuels and biochemicals as the landscape continues to evolve.  They represent not only a technology that can help drive sustainability performance, but also competitive performance and strategic advantage.

Conclusions

Our analysis provides an important input into market intelligence for industries considering a foray into the biofuels / biochemicals sector.  Early adopters in this case will help to set the stage, and also be able to drive regulatory mandates and competitive advantage for biofuels and biochemicals as the landscape continues to evolve.  Biofuels / biochemicals represents not only a technology that can help drive sustainability performance, but also competitive performance and strategic advantage.