ADOPTION OF INNOVATION IN INTERACTIVE COMMUNICATION NETWORKS OF CENTRAL EUROPE

Karol I. Pelc
Michigan Technological University
Paper accepted for publication in Transformations, forthcoming in 2016


ABSTRACT              
 A model of innovation adoption process in interactive communication systems is presented. It combines classical approach to innovation diffusion (Rogers, 1962) with new elements of adoption analysis specific for social media and interactive communication technologies. Three models of adoption process are compared. Innovation adoption is viewed as a learning process consisting of multiple phases. Importance of the following two dimensions is emphasized: penetration rate and interactivity level. They are applied as indicators of adoption of novelties in the interactive networking environment. Interactive networks are defined as a category broader than social networks by including internet-based mobile messaging systems. Empirical data used for illustration of the adoption processes are derived from statistics of eight Central European countries, personal interviews, and selected comparative data at a global scale. Review of operational characteristics of networking mechanisms is focused on empirical material that illustrates two cases of interactive networking i.e. social networking, represented by Facebook, and mobile interactive messaging systems, represented by WhatsApp. Selection of statistical data and direct observations of user behavior allowed formulation of three hypotheses on causes of recent changes in interactive communication networks. Economic wealth of society i.e. level of national income (measured by GDP per capita) is not the only factor influencing adoption of innovation in interactive networks. In some cases it may even be not the most important one.  (Data excerpted from Table 3).

Facebook penetration rates in Central Europe and economic/demographic data of selected countries  in 2015. 

Country	Population	GDP/capita estimate PPP $	Internet/ population penetration %	Facebook/ population penetration %	Facebook/ Internet users %
Austria	8,584,926	47,500	83.1	40.8	49.1
Czech Republic	10,538,275	31,500	79.7	42.7	53.6
Germany	81,174,000	47,400	88.4	35.7	40.4
Hungary	9,894,000	26,000	76.1	51.5	67.7
Poland	38,005,614	26,400	67.5	36.8	54.5
Slovakia	5,421,349	29,500	83.1	42.4	51.0
Slovenia	2,062,874	30,900	72.8	41.2	56.6
Switzerland	8,236,573	59,300	87.2	42.5	48.7
SUMMARY DATA
Average level	20,490,000	37,312	79.7	41.7	52.7
Minimum	2,062,874   Slovenia	26,000 Hungary	67.5 Poland	35.7 Germany	40.4 Germany
Maximum	81,174,00   Germany	59,300 Switzerland	88.4 Germany	51.5 Hungary	67.7 Hungary
REFERENCE DATA
United States	321,368,284	56,300	87.9	59.7	67.9
European Union	507,970,816 (total)	37,800 (avg)	79.3 (avg)	46.5 (avg)	58.6 (avg)

Data sources: Facebook (2015), “Potential reach estimates” https://www.facebook.com/ads/create/; Internet Statistics 2015, “European Union Internet Users 2015” http://www.internetworldstats.com/stats9.htm  (retrieved 02/28/2016), "The World Factbook: Field listing – Location". The World Factbook. Central Intelligence Agency. Retrieved  12/10/2015, and www.cia.gov/library/publications/the-world-factbook/rankorder/rawdata­_2004.txt. Retrieved 04/03/2016.