Capturing the Cross-National Learning Effect: An Analysis of an Industrial Technology Diffusion

Abstract

Recent studies on cross-national diffusion have observed that when a new product innovation is introduced early in one country (the lead country) and with a time lag in subsequent countries (the lag countries), the consumers in the lag countries learn about the product from the lead country adopters, resulting in a faster diffusion rate in the lag countries. This study attempts to examine the relationship between lead and lag countries and to systematically capture the learning effect that takes place between the two social systems. In particular, this research examines the diffusion of retail point-of-sale scanners in countries that belong to the European Union, the United States, and Japan. It offers interesting insights for formulating efficient international marketing strategies.