The Diffusion of an Innovation in Indonesia
| Published date | 01 September 1994 |
| DOI | https://doi.org/10.1108/10610429410067405 |
| Pages | 19-26 |
| Date | 01 September 1994 |
| Author | Arjun Chaudhuri |
| Subject Matter | Marketing |
VOLUME
3
NUMBER
3
1994
19
This article presents an actual case study of
the diffusion of an innovation in a developing
country. Specifically, it deals with the
commercialization and marketing of palm oil
for industrial fried foods in Indonesia during
the 1980s by a joint venture company. The
theory of “the diffusion of innovations” is
discussed briefly and then its application to
the case study is described in detail.
The author, who served as a marketing
manager in the joint venture during the period
of the diffusion process, first documents the
relevant cultural environment in Indonesia at
the time of the diffusion.
Later sections discuss the development of
the innovation in terms of product
development and packaging;
commercialization of the innovation using
interpersonal sources and mass media; and
implementation of the innovation in which
change agent efforts, and characteristics of
the innovation (relative advantage, etc.) are
seen to have been crucial in the rate of
adoption of the innovation.
Finally, a critique of diffusion theory is
presented in terms of its applicability to
actual marketing practices as evidenced in the
case study.
The Theory of Diffusion
Rogers (1983) defines diffusion as “the
process by which an innovation is
communicated through certain channels over
time among the members of a social system”
(p. 5). Further, Figure 1 illustrates the
elements that Rogers suggests are influences
in the diffusion of an innovation. Of specific
importance to marketing are the
characteristics of the innovation – relative
advantage, compatibility, complexity,
trialability and observability. These attributes
serve to act as indicators of future rates of
adoption. The success of innovations depends
on the extent to which these traits are present
and on other conditions such as the
compatibility of the innovation to the existing
values and beliefs held in the social system,
the nature of the social system, the
effectiveness of communication channels and,
of course, the efforts of the change agents
(see Figure 1).
The diffusion process is considered to pass
sequentially through knowledge, persuasion,
decision, implementation and confirmation of
the innovation. In this regard, the advantages
and disadvantages of the mass media versus
interpersonal sources are discussed by Rogers
and he emphasizes the importance of various
communication channels at various stages of
the diffusion process. The mass media are
The Diffusion of an
Innovation in Indonesia
Arjun Chaudhuri
Journal of Product & Brand Management, Vol. 3 No. 3, 1994, pp. 19-26
© MCB University Press, 1061-0421
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