Page 45 - Complexity Perspective_Neat

What Drives Diffusion?

There are two constructs of complexity theory that underlie diffusion:

● Networked interactions: These either facilitate or block
communication of the idea amongst agents and

● Feedback Loops: The amplifying effect of supportive or
derogatory feedback between agents that drives the growth of
the new idea and decline of the old idea or the collapse of a new
offering.
Network Interactions

At the simplest, a human network involves an agent (person, firm)
interacting in any way with other agents to transfer information (facts,
opinions, orders). Such individual interactions occur on a huge scale
all the time creating a many-to-many network of interactions that can
be represented graphically using software (see Networks). Information
about the idea or offering can be thought of as flowing across the
network. For a prime example, think of a rumor exploding across the
internet. The speed and reach of the spread of the rumor depend on
the reach of the network and the willingness of individual agents to
pass it on (see virality).
Opinion Feedback

Best seen through an example. Say an agent passes on an opinion
about an offering by word of mouth to people he or she knows and
who respect his or her opinion. He or she attaches to the opinion
(explicitly or by implication) recommendation or warning about the
offering. A recommendation implies a suggestion to try the
offering. A negative opinion discourages buying. In this case of
launching a new offering, a recommendation amplifies uptake by
others as the idea spreads through the network and a poor
recommendation slows or stops growth (see Nonlinearity).

From the perspective of the product being displaced, the spread of an
unfavorable comparison with the new product amplifies the old
offering's decline. The speed of spread of the opinion depends, in part,
on the structure of the network of agent-to-agent relationships (see
Networks).

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