IN
DEGREE PROJECT INDUSTRIAL ENGINEERING AND MANAGEMENT,
SECOND CYCLE, 30 CREDITS STOCKHOLM SWEDEN 2020,
Diffusion of Sustainable Innovations
A Case Study of Optical Gas Imaging JACOB BLINKE
KTH ROYAL INSTITUTE OF TECHNOLOGY
SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT
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Abstract
During the last two decades, innovations that contribute to sustainable development has received increasing attention in the markets and academia. The diffusion of sustainable innovations is a key element in society’s transformation toward a greener and more sustainable economy. Within industries that utilize industrial gases in their operations, there are thousands of fugitive emission sources that puts strain on the safety of the plant and the personnel. As most gases are combustible and hazardous to humans and the environment, these companies must have effective leak detection and repair (LDAR) programs. In recent years, a new gas detection technology called Optical Gas Imaging have emerged which can identify gas compounds safer and more efficient compared to older leak detection technologies. However, the rate of diffusion of the innovation has been slow and limited to oil and gas industries, even though many other industries such as steel, paper and pulp and chemical industries utilize gases as well. As such, this research has aimed to identify factors that influence the adoption of sustainable innovations within gas-utilizing industries. The qualitative data was gathered through semi structured interviews with gas-utilizing companies in Sweden and analyzed with interpretive methods. The results show that regulatory factors are a strong driver for the diffusion of sustainable innovations while characteristics of price, availability and type of innovation- decision works as barriers. The generated knowledge may contribute on how innovators of a sustainable innovations can overcome these barriers and improve the rate of adoption of sustainable innovations.
Key words: Adoption, Sustainable Innovation, Diffusion of Innovations, LDAR, Optical Gas Imaging, Industrial Gases, Sustainability, Crossing the Chasm, Gas Leaks, Innovation, Innovation Adoption.
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Sammanfattning
Under de senaste två decennierna har innovationer som bidrar till hållbar utveckling fått ökad uppmärksamhet på marknaden och inom forskningen. Diffusionen av hållbara innovationer är ett viktig del av samhällets omvandling mot ett mer hållbart samhälle. Inom branscher som använder industriella gaser i sin verksamhet finns det tusentals flyktiga utsläppskällor som belastar anläggningen och personalens säkerhet. Eftersom de flesta gaser är brännbara och farliga för människor och miljö, är det viktigt att dessa företag har effektiva läckedetekterings- och reparationsprogram (LDAR). Under de senaste åren har en ny gasdetekteringsteknologi, Optical Gas Imaging, kommit fram som kan identifiera gasföreningar säkrare och effektivare jämfört med äldre tekniker för läckedetektering. Däremot, har diffusionsgraden för innovationen varit långsam och begränsad till olje- och gasindustrin, även om många andra industrier så som stål, papper och massa, och kemiska industrier också använder gaser som energi. Därför har syftet med denna stuie varit att identifiera faktorer som påverkar diffusionen av hållbara innovationer inom industrier som använder gaser. Den kvalitativa datan samlades in genom semistrukturerade intervjuer med företag i Sverige som använder gaser, där datan analyserades med tolkningsmetoder. Resultatet visar att lagar och regler är en stark drivkraft för diffusionen av hållbara innovationer medan innovationsegenskaper såsom ”pris” och nyckelfaktorerna ”tillgänglighet” och ”innovationsbeslut” agerar som hinder. Den genererade kunskapen från denna studie kan bidra till hur en hållbar innovationskapare kan åtgärda dessa hinder och förbättra dess diffusion i marknaden.
Nyckelord: Adoption, Hållbar Innovation, Diffusion av Innovationer, Optical Gas Imaging, Innovation, Industrigaser, Hållbarhet, Crossing the chasm, gasläckor, Adoption av Innovationer.
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Acknowledgements
I would like to express my sincere gratitude to some key persons that have supported me during this thesis. First of all, my supervisor Cali Nuur, whose advice and guidance have been invaluable throughout the process of this thesis. I would also take this opportunity to thank Tomas Jutebring and the personnel at FLIR, whose expertise, support and feedback have been an inspiration and of great value to me and this work.
Also, a huge thanks to all interview candidates, your invested time and contribution to this research have been most appreciated.
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Abbreviations
OGI=Optical Gas Imaging IR=Infrared
PA=Potential Adopters LNG=Liquefied Natural Gas LPG=Liquefied Petroleum Gas VOCs=Volatile Organic Compounds GWP=Global Warming Potential LDAR=Leak Detection and Repair TVA=Toxic Vapor Analyzer OVA=Organic Vapor Analyzer PPM=Parts Per Million
EPA= Environmental Protection Agency BAT=Best Available Technology
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Table of Contents
1. Introduction ... 8
1.1 Background ... 8
1.2 Problematization ... 9
1.3 Aim and Research Questions... 10
1.4 Delimitations ... 10
1.5 Outline ... 10
2. Literature Study ... 11
2.1 The Gas Market ... 11
2.1.1 Overview of the most used Industrial Gases ... 11
2.1.2 The Gas Market in Sweden ... 12
2.1.3 Regulations Swedish Gas Market ... 12
2.2 Leak Detection Technologies ... 13
2.2.1 Soap Bubble screening ... 13
2.2.2 Electronic Screening ... 13
2.2.3 Organic Vapor Analyzer (OVAs) & Toxic Vapor Analyzers (TVAs) ... 13
2.2.4 Acoustic Leak Detection ... 14
2.2.5 Thermal Cameras... 14
2.3 Optical Gas Imaging ... 15
2.3.1 Comparison Sniffing and Optical Gas Imaging ... 16
2.3.2 The Different OGI-Cameras from FLIR ... 17
2.4 Innovation ... 18
2.4.1 Product vs. Process ... 19
2.4.2 Radical vs Incremental ... 19
2.5 Sustainable Innovation ... 20
2.6 Diffusion of Innovations Theory: ... 21
2.6.1 Innovation ... 22
2.6.2 Communication Channels ... 22
2.6.3 Time... 23
2.6.4 Social system ... 29
2.6.5 Criticism of The Diffusion of Innovations Framework ... 29
2.7 Adoption and diffusion of Sustainable Innovations: ... 30
2.7.1 Public Policies ... 32
2.7.2 Technological Opportunities and Capabilities ... 33
3.0 Theoretical Framework ... 34
3.1 The Technology-Organizational-Environmental-Framework ... 34
3.2 The Technological Context ... 34
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3.2.1 Availability ... 34
3.2.2 Characteristics ... 34
3.3 The Organizational Context ... 35
3.3.1 Type of Innovation-Decision ... 35
3.3.2 Communication ... 35
3.3.3 Degree of sustainability work at firm level ... 35
3.3.4 Firm size ... 35
3.3.5 Compatibility with routines ... 36
3.4 The Environmental Context ... 36
3.4.1 Industry characteristics ... 36
3.4.2 Degree of Competition ... 36
3.4.3 Customer Demand ... 37
3.4.4 Government regulatory policies ... 37
3.5 Framework... 37
4.0 The Empirical Case ... 38
4.1 Optical gas imaging as a sustainable innovation ... 38
Economical ... 38
Social ... 38
Environmental ... 38
4.2 The Market of OGI in Sweden ... 38
5. Method ... 41
5.1 Research Design ... 41
5.2 Data collection ... 42
5.2.1 Literature ... 42
5.2.2 Direct information from FLIR ... 42
5.2.3 Interviews ... 42
5.3 Data Analysis ... 44
5.4 Ethical Considerations ... 44
6. Empirical Results from Interviews ... 45
6.1 The Technological Context ... 45
6.1.1 Availability: ... 45
6.1.2 Characteristics ... 45
6.2 The Organizational Context ... 47
6.2.1 Firm’s size: ... 47
6.2.2 Sustainability work at firm level: ... 47
6.2.3 Compatibility with maintenance routines ... 48
6.2.4 Communication: ... 48
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6.2.5 Type of Innovation-Decision: ... 49
6.3 The environmental Context ... 49
6.3.1 Industry Characteristics ... 49
6.3.2 Degree of Competition: ... 49
6.3.3 Government regulatory policies ... 50
6.3.4 Customer Demand of sustainable products ... 50
7. Analysis and Discussion ... 52
7.1 Technological Context ... 52
7.1.1 Availability ... 52
7.1.2 Characteristics ... 52
7.2 Organizational Context ... 54
7.2.1 Firm Size ... 54
7.2.2 Sustainability work at firm level ... 54
7.2.3 Compatibility with maintenance routines ... 55
7.2.4 Type of Innovation-Decision: ... 55
7.2.5 Communication: ... 56
7.3 External Context ... 56
7.3.1 Industry characteristics and Government Regulatory policies ... 56
7.3.2 Degree of Competition ... 58
7.3.3 Customer Demand of Sustainable products ... 58
7.4 Possibility of adoption: ... 58
7.5 Potential solutions to identified barriers: ... 59
7.5.1 Characteristics ... 59
7.5.2 Availability ... 60
7.5.3 Type of Innovation decision ... 60
7.6 Crossing the Chasm ... 61
8. Conclusion and Implications ... 62
8.1 Managerial Implications ... 63
8.2 Limitations... 63
8.3 Future Research ... 63
References ... 65
Appendix I. The Science behind Optical Gas Imaging ... 75
Gas infrared absorption spectra ... 76
Appendix II. Questionnaire Template with Potential Adopters ... 77
Technological Context ... 77
Organizational Context ... 77
External Context ... 77
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List of Figures
Figure 1. Global industrial gas market end user segments 2017 (The Business Research Company, 2018)
... 12
Figure 2. Visible gas leak on a flange on the thermal image (FLIR, 2020a). ... 15
Figure 3. Visible gas leak on the thermal image (FLIR, 2020b) ... 15
Figure 4. Optical gas imaging camera, FLIR GF620 ... 18
Figure 5. Framework for defining the type of innovation (Henderson & Clark, 1990) ... 20
Figure 6. The Innovation-Decision Process ... 24
Figure 7. Adopter Categories based on their innovativeness. ... 25
Figure 8. Moore’s Adopter Segments and the chasm (Stringfellow, 2018). ... 27
Figure 9. S-curve illustrating the rate of adoption (Rogers, 1983) ... 28
Figure 10. Framework used in this study ... 37
Figure 11. Industry Production in Sweden 2019. (Carlgren, 2020) ... 40
Figure 12. Flowchart over research Design ... 41
Figure 13. The five adopter segments of the Swedish OGI market. ... 61
Figure 14. Infrared absorption characteristics for methane (Flir-Ogi, 2019) ... 76
Figure 15. Infrared absorption characteristics for propane (Flir-Ogi, 2019) ... 76
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1. Introduction
In the following chapter the background to the thesis will be presented, followed by 1.2 Problematization, 1.3 Aim and research questions, 1.4 Delimitations and lastly 1.5 an outline of the thesis.
1.1 Background
Greenhouse gases have increased rapidly in the last hundred years as a result of human actions (Hartmann, 2016) and there is a growing consensus that there is a high level of urgency to decrease our emissions and our environmental pressure in general (Rockström, et al., 2009). One key element is for our society to transition to be more sustainable, which requires fundamental changes in production and consumption patterns (UNEP, 2011). As a consequence, during the last two decades, innovations that contribute to sustainable development has received increasing attention (Markard, et al., 2012).
Innovation is defined as “idea, practice or object that is perceived as new by an individual or other unit of adoption.” (Rogers, 1983, p11). Innovation can take many forms and appearances; it can be a tangible product such as an electric car, or intangible, such as a service, software or a behavioral pattern (Driessen
& Hillebrand, 2002). However, depending on the innovation and its characteristics, the time for society, or another specific population, to adopt the innovation can vary greatly. The process of how quickly and to what degree a social system accepts an innovation is referred to as the diffusion of innovations, which is a theory used to understand how innovations are diffused (Rogers, 1983). Therefore, the importance of sustainable innovations and its diffusion is a key element in this transformation process towards a more green economy. Especially now when increasingly more sustainable innovations are becoming mature, or already is (Karakaya, et al., 2014).
In our efforts to transition to a more sustainable society, many of our energy systems are taking steps to decarbonize and change over to renewable energy. Both enforced legislation and customer demands force companies to change their energy solutions (Granado, et al., 2018). However, this transition will take many years and as a consequence, to solve the energy problem in the short and medium-term, many industries are changing over to natural gas instead, which help to reduce carbon emission on a larger scale compared to other alternatives (Poulopoulos & Inglezakis, 2016), (Safari, et al., 2019). But, the growth of natural gas is not the only gas that is increasing in usage, other types of industrial gases such as hydrogen, oxygen, biogas, and nitrogen are increasing steadily as well (The Business Research Company, 2018). As a consequence, the increased use of industrial gases requires more infrastructure to store, transport and operate the gas in major end-use industries such as chemicals, steel production, oil and gas, petrochemicals and the energy sector, which in turn puts more strain on businesses maintenance management of the gas facilities (IMARC Group, 2019). As gases are volatile compounds, they can easily escape through vents, compressor stations, transportation lines, connections and through other types of leaks on the infrastructure that contains the gas (Environmental Protection Agency, 2014) and many of the industrial gases are potent and hazardous to humans and the environment, which incentivizes the need to prevent leakage. Thus, the adoption of sustainable innovations that helps to solve these problems can prove useful for these types of industries.
In recent years a new gas detection technology called Optical Gas Imaging (OGI), has been developed, to much more efficiently view gas leakage. It is a highly specialized infrared camera that can “see”
otherwise invisible gases and volatile organic compounds (VOCs) and display it on a screen. Optical gas imaging cameras offer many advantages compared to other gas detecting technologies leading to more efficient and safer leak detection (Whitfield, 2019). However, the spread and utilization of this innovation have been very limited so far and mostly concentrated at bigger production facilities within the oil and gas industry. As many other industries are utilizing gases, leak prevention should be a top priority for many companies from a sustainability perspective, but today this is not the case. The problem is most likely not only the innovation itself but also a problem of diffusion. But, despite strong forces
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1.2 Problematization
In plants that operate with gases, there are many fugitive emission sources and a majority of them can originate from a small number of leaking components such as control valves, pressure release valves, line connections, or flanges. One plant can have thousands of potential leakage points and if they are left untouched, fugitive sources can add up, leading to the total emitted gas volumes to be significantly high (Homssi, 2010). Moreover, fugitive emissions put strains on the safety of the plant and the personnel, as most gases are hazardous and combustible, making them very dangerous to humans. As such, for many gas-utilizing companies, to comply with regulations, decrease emissions, and to uphold safety, effective leak detection and repair (LDAR) procedures are essential to succeed (Environmental Protection Agency, 2014).
The OGI camera brings many benefits compared to other leak detection technologies used in LDAR programs, despite this, the diffusion of the Optical Gas Imaging camera has so far been progressing at a slow pace and limited to the oil and gas industry, and for the detection of Sulfur Hexafluoride (SF6) Gas. SF6 is an extremely potent gas often found in high voltage circuit breakers (Žarković & Stojković, 2019). In Sweden, only a few cameras have been adopted by consumers.
With increasing emphasis on sustainable development and innovations that provide a positive effect on sustainable development, there are contradicting findings in the literature in regards to what factors are the most essential for the adoption of sustainable innovations. While many argue in terms of internal and external factors (Abdullah, et al., 2015; Hojnik & Ruzzier, 2016; Walker, et al., 2008), consequently the identified factors are dependent on the context in which they are studied (Montalvo, 2008). As such, there exist numerous factors working as both drivers and barriers in sustainable innovation research.
Furthermore, while some studies suggest that sustainable innovations have trouble diffusing among potential adopters (Halila, 2007; Karakaya, et al., 2014), others argue that sustainable innovations have proven itself as a strong force for change in business and society, and provides a greater competitive advantage for organizations in the long run (Rennings, 2000; Montlavlo 2002; Veronica, et al., 2019).
Although there are many diffusions of innovation studies focusing on sustainable innovations, there is none that discusses the nature and the diffusion process of innovations within the context of gas-utilizing industries, or with an innovation such as the Optical Gas Imaging (OGI) yet, thus creating a gap in the literature.
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1.3 Aim and Research Questions
The aim of this thesis is to identify, in an exploratory manner, the key factors that influence the rate of diffusion of sustainable innovations, focusing on gas utilizing industries. Additionally, this study tries to establish how sustainable innovations can be classified and how the OGI innovation can help gas- utilizing industries to fulfill their sustainability goals. In particular, this study seeks to answer the following research questions:
RQ1: What are the key factors that influence the rate of diffusion of sustainable technologies and innovations within industries that operates with industrial gases?
RQ2: How can Optical Gas Imaging facilitate firms’ sustainability work within those industries?
This qualitative and exploratory case study has been conducted in collaboration with FLIR systems, which is a high-tech company that develops and manufacture sensor technologies and is specialized in thermal imaging technologies and systems. FLIR is a global company with operations all around the world and their expertise about the OGI technology and the corresponding markets have provided significant insights to the understanding of its usages. The information has been provided in the form of interviews with employees at the company’s headquarters in Sweden and through internal and external documents and information.
1.4 Delimitations
There are many types of gases used by industries and Volatile Organic Compounds (VOCs) that generate gases, therefore one delimitation of this study has been to solely focus on industrial gases, which are the most important compounds to many industries and it is the largest seen in volume as well. Furthermore, to keep the scope of the research on a reasonable level, another delimitation to the study was to focus on gas-utilizing industries in the Swedish market. However, even though the focus of the study and the performed interviews were executed in Sweden, there exist many similar companies outside the Swedish market, thus creating the possibility for generalizability. In addition, as the classification of the OGI camera as a sustainable innovation, it is not necessarily representative for all sustainable innovations within the gas-utilizing industry. Therefore, it seemed necessary to delimit the study to focus on leak detection equipment as well.
1.5 Outline
The rest of the thesis is structured as follows: Chapter 2 presents the literature review, presenting the relevant knowledge and theories used in this study. Chapter 3 presents a theoretical framework used for the analysis of the interviews and the following discussion. Chapter 4 presents the empirical setting of the Optical Gas Imaging camera. Chapter 5 presents the chosen research design, data collection, data analysis, and ethical considerations. Chapter 6 present the empirical results from the performed qualitative interviews. Chapter 7 presents the discussion and analysis of this study, structured after the proposed framework. Chapter 8 presents conclusions, managerial implications, limitations, and gives suggestions for future research.
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2. Literature Study
This chapter will present and critically review existing literature and relevant knowledge within the research area. The chapter begins with an overview of the most commonly used industrial gases and within which industries they are utilized the most. Followed by, the gas market in Sweden, gas industry regulations, leak detection technologies and Optical Gas Imaging. After this section the definition of innovation and sustainable innovations are brought to light, which is followed by the theory of diffusion of innovations and the adoption and diffusion of sustainable innovations.
2.1 The Gas Market
2.1.1 Overview of the most used Industrial Gases
Industrial gases are gases that are produced in large quantities and used in various industrial processes, and they can either be supplied in gaseous or liquid form (The Business Research Company, 2018).
Depending on which sector the gases are used in, they are also known as fuel gases, refrigerant gases, medical gases or specialty gases. Their chemical properties, such as reactivity or inertness and physical properties such as boiling point, density, viscosity, and vapor pressure, make them suitable for different applications in various industries (Downie, 2002).
The most common gases, seen to volume, are oxygen, hydrogen, natural gas (methane), nitrogen and carbon dioxide. Other industrial gases include gases such as, chlorine, helium, nitrous oxide, acetylene and argon (Almqvist, 2003). These gases are not the only ones that are considered as industrial gases, but they represent a majority of the gases that are produced and used in the industry.
The reactivity of gases can be classified into three different groups, oxidizers, inert gases and flammable gases. Inert gases are gases such as nitrogen, helium, argon and carbon dioxide. Oxidized gases are oxygen, nitrous oxide and chlorine. Flammable gases are natural gas, acetylene and hydrogen (Cooke, 2012).
Applications of industrial gases are vast and are normally seen in industries such as oil and gas, chemical, metallurgy, food processing and packaging, medical, welding and semiconductor industries etc.
(IMARC Group, 2019). For instance, hydrogen and natural gas are used to a large extent in the industry as fuel for cutting and welding, heat treatment, power and energy for transportation and other industrial processes (Linde-Gas, 2020). Oxygen may be used in hospitals and steel manufacturing, and nitrogen are used in production of electronics and food preservation and food processing. Acetylene is also a very important gas, which in combination with oxygen, is used for the welding and cutting industry (Almqvist, 2003).
In many industries, companies often produce a mixture of industrial gases as by-products, as a consequence of certain production process (Folkson, 2017). For instance, steel companies produce hydrogen, methane and carbon monoxide as by-products of the steel making process (Caillat, 2017).
By end user industry of industrial gases, manufacturing is the largest global segment, which have a high demand of nitrogen, hydrogen and other welding gases. The second largest end user segment is Metallurgy, which mainly use oxygen for increasing combustion efficiency of ferrous and other metal production (The Business Research Company, 2018). A representation of the industrial gas market end segments can be seen in Figure 1 below.
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Figure 1. Global industrial gas market end user segments 2017 (The Business Research Company, 2018)
2.1.2 The Gas Market in Sweden
In general, there are many industries in Sweden that are utilizing industrial gases, everything from transports, paper and pulp industries, smelters, healthcare, and the food industry. The two biggest are natural gas, either in liquid form or gas, and liquefied petroleum gas (LPG), but more renewable options such as biogas and hydrogen are rising in consumption steadily in Sweden. The benefits that industrial gases provide for industries in economic and environmental added value are driving the trend towards more gas utilization in Sweden, and many companies are at the forefront of sustainable work and practices, which fuels this trend even more (Industry Representative, 2020).
Depending on where the companies’ facilities lie in the country, the transports of gas are either done by pipelines (only southern part of Sweden), by freight or by truck. There are also some filling stations throughout the country where larger volumes of gas can be stored, which ensures the supply and shortens the transports of gas to companies that normally require very long distances for transport. There are LNG-storage facilities located in all the big harbors in Sweden, in the cities Gothenburg, Stockholm, Nynäshamn and Umeå, and there are plans on building more LNG-terminals in the future. The southern part of Sweden connects to the national gas network in Europe, originating from Denmark. The largest volumes are still from pipelines, but more and more of the volumes in the pipelines are coming in liquid form (Industry Representative, 2020).
2.1.3 Regulations Swedish Gas Market
The gas market is heavily regulated in terms of storage, production, handling, and utilization of industrial gases. In general, the regulations are based on the size of the facility, the type of facility, and what type of gases that are managed. With the increasing size of the facility, the level of regulations increases.
Some gases are also more dangerous, explosive, or more hazardous than others, which require tougher regulations (Industry Representative, 2020). Carbon dioxide for instance is very dangerous in confined spaces and at elevated concentrations (Scott, et al., 2009), therefore, for facilities that run a risk for these types of events, the regulations are tougher. Safety regulations for both the facility itself and the personnel are extremely important, as accidents with gases, and with high pressure can be devastating (Industry Representative, 2020).
Regulations in Sweden consist of both Swedish laws and policies, but many regulations originate from the EU and many laws and policies are done in collaboration with gas industry trade associations. In addition to laws that determine the safety and work environment, for instance, there are also requirements on gases to uphold a certain quality. Meaning, that the gas that is sold or distributed needs to contain a certain percentage of that gas and not contain a certain degree of impurities. Companies also have to report the amount of gas they are using, and depending on the type of gas, the emission rates are
13 | P a g e affected, because gases have different Global Warming Potential (GWP). Sulfur Hexafluoride (SF6) for instance, has a GWP of 24,000 and is considered an extremely potent gas (Tsai, 2007). However, depending on the industry and if the volumes are very small, there might not be a requirement to report the gas usage. (Industry Representative, 2020)
2.2 Leak Detection Technologies
In plants that operate with gases, there are many fugitive emission sources and a majority of them are from a small number of leaking components such as a control valve, a pressure release valve, a line connection, a check valve, a flange, a bellows valve, or an open-ended pipe. One plant can have thousands of these sources, which creates many potential leakage points where an inspector needs to control. If leakages are left untouched, fugitive sources can add up, leading to the total emitted volumes to be significantly high (Homssi, 2010).
Volatile Organic Compounds (VOCs) are chemical compounds that evaporate easily at room temperature. A wide range of carbon-based molecules, such as gasoline and natural gas, are considered as VOCs (Anand, et al., 2014). The term is often used in a legal or regulatory context and is a central concept in gas leak detection.
To control and reduce leakages and increase safety, all entities managing gases are required to have some form of Leak Detection and Repair (LDAR) program in place. In the US, the Environmental Protection Agency (EPA) requires companies to follow the “Method 21” process for their LDAR programs. Method 21 provides guidelines to identify and quantify leaks of VOCs and gases, which among other recommendations, suggests what type of instruments be used for leak detection (EPA, 2017). This method is less common outside the US, but there are other standards and requirements to carry out leak detection surveys that have been approved by regulators (Homssi, 2010).
There are primarily five leak screening techniques used, the most widely used instrument in the industry to measure gas leaks are called toxic vapor analyzer (TVA), Organic Vapor Analyzers (OVAs), and infrared cameras. Other common screening techniques include, soap bubble screening, electronic screening, and acoustic leak detection (US-EPA, 2003). The following paragraph will give a short overview of these techniques.
2.2.1 Soap Bubble screening
Soap bubble screening is a fast, easy, and low-cost type of screening technique, which involves the spraying of a soap solution on smaller accessible components, such as threaded connections. Soaping is effective when trying to locate loose fittings and connections, as well as checking the tightness of a repair. Normally, the emission sources that are cost-effective to locate, quantify, and fix, are bigger than the small leaks that are more likely to be found with soaping. However, as soap bubble screening is negligible in cost and very rapid, it can easily be incorporated into current maintenance routines and procedures (US-EPA, 2003).
2.2.2 Electronic Screening
Electronic screening is another fast gas detection method. A small handheld gas detector or a “sniffing”
device is used to detect elevated ambient concentrations of specific gases and depending on the sensitivity of the instrument, it can have difficulties detecting the presence of specific gases, especially if the leaks are located in an outdoor environment. Generally, these gas detectors are used on bigger openings, which cannot be screened with soaping. (Lu, et al., 2020)
2.2.3 Organic Vapor Analyzer (OVAs) & Toxic Vapor Analyzers (TVAs)
TVAs and OVAs are portable hydrocarbon detectors that can identify and quantify leaks, which means that they can measure the concentration levels of organic vapors and gas emitted to the atmosphere in an area around the leak (O'Neill, 2019). The difference between the two instruments are their primary detection technologies, an OVA uses a flame ionization detector (FID), allowing it to detect
14 | P a g e concentrations between 9-10,000 parts per million (ppm) while TVAs combines an FID and a photoionization detector (PID) allowing it to detect smaller concentrations and exceeding concentrations of 10,000 ppm (LeBouf & Coffey, 2015; Chermisinoff & Davletshin, 2015). Screening is performed by placing a probe inlet at the location where leakage can appear. If a leak is detected, the probe is slowly moved along the surface, interface, or opening at the area around the leak until a maximum concentration reading is acquired, which is also known as the “leak screening value” (US-EPA, 2003).
An inspector can screen around 500 components per day with these types of instruments (Kangas &
Vaskinen, 2015). Which makes the screening process with TVAs and OVAs rather slow, and they require frequent calibrations to work correctly (US-EPA, 2003). Even though they are reliable and relatively inexpensive, the operator who uses the instrument must know exactly where to look and physically touch it (O'Neill, 2019). However, these instruments are widely spread, and used in many industries, making them readily available for organizations to perform leak screening.
2.2.4 Acoustic Leak Detection
Acoustic leak detection uses portable instruments designed to detect an acoustic signal when a pressurized gas escapes through an opening. When a gas moves from high pressure to a low-pressure environment, as is the case when a leak is present, the created turbulent flow produces an acoustic signal.
These instruments are reliable but they cannot measure leak rates, instead, they provide a relative indication of leak size, in principle, this means that a “loud” or high-intensity signal correlates to a greater leak rate (US-EPA, 2003). There are two types of acoustic leak detection methods, high- frequency detection, which is mostly used in noisy environments, and ultrasonic leak detection, which is more accurate than high-frequency detection but sensitive to background noise. Ultrasonic leak detection it is most useful for identifying leaks for inaccessible components (Chermisinoff & Davletshin, 2015).
2.2.5 Thermal Cameras
Thermal imaging cameras, also known as IR-cameras, have been used for decades to improve maintenance in a variety of different industries, including electrical/mechanical inspections, integrity inspections, and process equipment (O'Neill, 2019). Thermal imaging is a non-contact method, which maps the radiation pattern and surface temperature of any object with a temperature above absolute zero (-273 °C) (Teena & Manickavasagan, 2014). In the context of gas leak detection, thermal cameras have been used to analyze the thermal radiation changes around pipelines, connections, valves, and other similar components (Vollmer & Möllmann, 2017). When a thermally insulated gas is forced through a small hole, such as a leakage point, it is exposed to expansive cooling, which in practice means that the area around a gas leak is cooled down, and the temperature difference with the surroundings can be detected by an IR-camera (Soldan, et al., 2013).
Thermal cameras are normally handheld but can be a part of fully automated systems, for instance in surveillance and production systems (Williams, 2009). Additionally, thermal cameras can be mounted on mobile vehicles, drones, and helicopters (Harvey, et al., 2016). Arial inspection is helpful when larger areas need to be investigated, for instance, pipelines, power lines, landfills, big processing plants, or special areas that are hard to reach and/or hazardous (Stockton & Tache, 2006).
There are great benefits for many industries to use infrared cameras in their operations, inspections, and preventive maintenance, allowing easier detection of defective components and preventing unnecessary shutdowns, but, there are certain limitations to its usage (Vollmer & Möllmann, 2017). For instance, the environment around the object and the camera have a profound effect on the images, both in quality and accuracy. Furthermore, many materials cannot accurately be measured because of their low emissivity, such as polished metals. Moreover, many other factors can cause a false thermographic image, therefore, to determine what is acceptable or not, an inspector who operates the camera needs to have professional expertise in the field (Gustavsson, 2009). This might pose a barrier to some companies that do not have the personnel or the resources to utilize the technology.
15 | P a g e Despite the benefits and shortcomings of normal IR-cameras, they cannot “see” gases or VOCs directly, as they only can detect thermal radiation and temperature differences, which might cause difficulties when trying to locate some gas leaks, particularly smaller ones. But, in recent years, a highly specialized IR camera called Optical Gas Imaging has been developed to solve this problem.
2.3 Optical Gas Imaging
Optical gas imaging (OGI) is a modern thermal imaging technology, which uses a high sensitivity infrared (IR) camera to screen and detect smaller elusive emissions of gases. The main advantage of OGI is its ability to quickly scan large areas with greater precision and from a long distance, making it much more effective and more efficient compared to other leak detection technologies (O'Neill, 2019).
Furthermore, the allowance of a more accurate pinpointing of leak sources, makes the following repair process faster, as it can start immediately after it has been located.
In a field study conducted for the City of Forth Worth, the surveyors concluded that the time to perform scanning with infrared gas cameras is at least nine times faster than performing other approved method 21 scans on the same site equipment (FLIR, 2014). Furthermore, as it is a non-contact measuring instrument, it can be used in “hard-to-reach” locations, which help to improve the safety of the inspector and the plant itself. (FLIR, 2019a).
The camera is able to visualize gases by using the physics of fugitive gas leaks and by filtering certain energy levels of gases in the infrared spectrum. For a more detailed explanation of the science behind the OGI camera, see Appendix 1. This allows the camera to produce a full picture of a scanned area in real-time and on the LCD-display, leaks appear as smoke, allowing the viewer to see the fugitive gas emissions (FLIR, 2019b). The OGI camera can detect smaller leaks from several meters away and big leaks from hundreds of meters away. Figure 2 and Figure 3 illustrate how gas is displayed on the camera screen.
Figure 2. Visible gas leak on a flange on the thermal image (FLIR, 2020a).
Figure 3. Visible gas leak on the thermal image (FLIR, 2020b)
16 | P a g e An additional benefit for this type of camera is its dual-use properties, meaning that it can utilize the functions of a normal infrared camera as well, thus allowing the inspector to switch between gas detection and other types of maintenance inspections (FLIR, 2020c). However, this also means that the OGI camera has the same shortcomings as normal IR-cameras.
According to the US-EPA, gas detection cameras are the most effective method for complying with new regulations when compared to traditional technologies, and additionally, OGI has been determined as the best available technology (BAT) for gas leak detection (Opgal, 2018). In the method 21 protocol however, gas cameras are approved by the EPA as an “alternate work practice”, but in the EU the cameras are increasingly accepted and recommended as the most suitable leak detection method (FLIR, 2019b). This is somehow contradicting, as the camera is considered as BAT but not a fully approved gas detection method. The reason for this is probably that the camera is relatively new and has not been tested under a sufficient period of time.
Unlike a sniffer, an OGI camera cannot quantify the size of a leak accurately, therefore, in many cases if the actual volume of a leak is of interest, a sniffer probe has to be used as well. By localizing the leak with the gas camera first and then measure the concentration levels with a sniffer probe is referred to as
“Smart LDAR” (Cordis, 2018).
Unfortunately, not all gases can be detected by the OGI camera, and those that can be detected by it, is limited by the used radiation filter (Flir-Ogi, 2019). In short, one camera cannot detect all gases.
Furthermore, the camera is not able to tell the exact type of gas that is leaking (FLIR, 2020c). Therefore, the inspector has to understand what type of gas that he or she is working with, to understand the danger of the leaking gas, and to pick the right camera.
The cameras’ biggest area of use has so far been within the oil and gas industry, as the enterprises within that industry poses enormous processing plants, well sites, compressor stations, and miles and miles of pipelines, thus creating many types of components that can fail and start to leak. As a whole, the oil and gas industry loses eight million metric tons of methane as a consequence of fugitive emissions every year, this results in lost product, further release of greenhouse gases and rising costs of regulatory fines and damages (FLIR, 2014). Normally, companies within the industry are required by strict regulations to monitor fugitive emissions. Hence, the industry is inclined to have the best and most efficient equipment to find and repair gas leaks at their facilities.
2.3.1 Comparison Sniffing and Optical Gas Imaging
The most widely used gas detection technology today is sniffers. OGI is often compared to sniffers as it has been the standard technology for several years and now both OGI and the sniffer technologies are considered as BAT for monitoring VOCs (Kangas & Vaskinen, 2015). Therefore, to gain a better overview of the two technologies, their characteristics can be seen in table 1.
Table 1. Comparison sniffing and OGI (Kangas & Vaskinen, 2015).
Technology Sniffing Optical Gas Imaging
Detection mode
Concentration measurement at every potential leakage point. The sniffing probe needs to be in close proximity (1- 2cm) where a leak can occur:Scanning of facilities and detection of gas plumes.
Scanning can be done from a distance.
Applicability
All plants handling volatilehydrocarbons, especially at facilities where pipe systems are easily accessible.
Plants managing highly toxic substances where very small leaks must be detected.
All plants handling volatile hydrocarbons. Especially larger facilities or plants where potential leaks are covered or not easily accessible.
17 | P a g e
Result
Concentration (ppm) in the close vicinity of the leakVideo where leaks appear as smoke
Detection Limit
Depends on the substance that is measured. Provided that a suitable instrument is used, it can detect very low concentrations of just a few ppm.Depends on the nature of the substances. It can detect 1-10 g/h (grams per hour) for hydrocarbons.
Reliability
False negatives (large leak with low ppm) and false positives (tiny leak with high ppm) can occur.If the inspection is performed by a skilled operator, all leaks above the OGI detection threshold will be detected consistently.
Limitations
Requires close-range access to potential leak pointsNot suitable for components covered by insulation
Not practical for components that are out of reach
Can only detect leaks of items included in the survey program
The detection range depends on the detection limit for the emitted substances and the size of the leak.
All gases cannot be detected
No accurate quantification of leak volumes
cannot specify what type of gas that is visualized
Detector Cost
5000-20 000 € 70 000-100 000€Survey Manpower
500 components per day per inspector, very labor-intensive
1500-2000 components per day for 2- people team
2.3.2 The Different OGI-Cameras from FLIR
As previously mentioned, an OGI camera is specialized in certain wave-lengths through its special filter, which means that one camera cannot identify all gases. Therefore, depending on what gases companies are working with, they need a specific camera with the right detection frequency. FLIR offers several types of gas cameras and the market as of now is segmented based on the different cameras rather than a specific industry. But, as different industries use specific gases, the segmentation is indirectly based on the type of industry. Ultimately, this means that companies with large gas utilization, such as gas and oil producers, have a much larger need to detect gases and much bigger areas to cover, which most likely makes the adoption rate faster in this industry. As of now, FLIR offers eight different handheld cameras with varying wavelengths.
Table 2. FLIR Optical Gas Imaging Camera Models
Camera Primary Gas seen Spectral Range (µm)
Temperature range (˚C)
Detector Type GF620
Hydrocarbons (CxHx) 3.2-3.4 µm -20˚ to 350˚ Cooled LnSbGFx320
Hydrocarbons (CxHx) 3.2-3.4 µm -20˚ to 350˚ Cooled LnSbGF320
Hydrocarbons (CxHx) 3.2-3.4 µm -20˚ to 350˚ Cooled LnSbGF77
Methane (CH4), Sulfur dioxide (SO2), Nitrous oxide (N20)7.0-8.5 µm -20˚ to 70 ˚ Uncooled microbolometer
GF304
Refrigerants 8.0-8.6 µm -20˚ to 250 ˚ Cooled QWIPGF306
Sulfur Hexafluoride (SF6) &Ammonia (NH3)
10.3-10.7 µm -40˚ to 500 ˚ Cooled QWIP
GF346
Carbon Monoxide (CO) 4.52-4.67 µm 20˚ to 300˚ Cooled LnSb18 | P a g e
GF343
Carbon Dioxide (CO2) 4.2-4.4 µm - Cooled LnSb The most sold cameras are the three cameras that detect hydrocarbons, followed by GF306 which primarily is used to detect SF6. SF6 is used in high voltage circuit breakers which protect electrical power stations and distribution systems, as it has an extremely high GWP, a small number of gas leaks contribute significantly to emission rates. GF620, GFx320, and GF320 are the models that are most used in the oil and gas industry, all of them are calibrated at the same frequency and thus detect the same gases. The difference is the resolution, GF620 has a higher resolution than GF320 and GFx320, while the GFx320 has the same resolution as GF320, but is certified for to be used in class/zone 1 hazardous locations. A zone 1 certified equipment means that it is approved to be used where ignitable concentrations of gases, vapors or liquid exist or may exist as a consequence of repair maintenance or leakage (Allen-Bradley, 2001). Thus, this type of equipment can be considered as “spark-proof” by not exposing or containing any surface that can cause a spark, allowing it to be used in more dangerous locations at plants. GF304 is used to find refrigerants that are used in a variety of systems such as pharmaceutical production, food production, and air conditioning. GF343 can detect carbon dioxide, which is used and generated in various industries and applications, for instance, it can be used in the oil and gas industry, carbon capture systems, and ethanol production. GF346 can detect monoxide which is a gas that is commonly generated at steel production facilities for instance. Other industries include bulk chemical manufacturing and petrochemical industries. The GF77 is used for the detection of hydrocarbons as well but has an uncooled detector, which cannot provide as clear or as accurate picture as the cooled cameras (FLIR, 2020a). Figure 4. Illustrates the OGI camera GF620.2.4 Innovation
An innovation is defined as “idea, practice or object that is perceived as new by an individual or other unit of adoption.” (Rogers, 1983, p. 11). It does not matter if an idea is objectively new or not, what matters is the individual’s perceived newness of the idea. If the individual sees the idea as new, regardless if it is a product, service, or practice, it is considered an innovation (Rogers, 1983). This implies that an innovation may be perceived as new within one social system, while in another, it is seen as old practice. Tornatzky & Fleischer (1990) refers an innovation as: “…technological innovation involves the situationally new development and introduction of knowledge-derived tools, artifacts, and devices by which people extend and interact with their environment” (Tornatzky & Fleischer, 1990, p.11).
An innovation can take many forms and appearances; it can be a tangible product such as an electric car or intangible, such as a service, software, or behavioral patterns (Driessen & Hillebrand, 2002). Many forms of environmentally friendly behaviors can be considered as innovations which in turn mean that they can be studied from a diffusion and adoption perspective (Darley & Beniger, 1981). Innovation is
Figure 4. Optical gas imaging camera, FLIR GF620
19 | P a g e always ongoing, which can create problems when trying to measure innovations. Continuing advances in technology and feedback from users contribute to product and service innovation, and economies of scale and competition help to bring down the prices. During the diffusion process, new uses and users may be found and thus the characteristics of the innovation and the way of how it is used might also change (Kemp & Pearson, 2007).
According to Roback (2006), the concept of innovation has taken two different directions over the years, 1) social change and 2) economic development. The first field has a more general definition where researchers tend to focus on areas such as cultural heritage, social interaction, communication, and decision making, (Wejnert 2002; Rogers 1983; Kincaid 2004). While the second field relates almost completely towards industrial and enterprise competitiveness. Within this field, the authors argue that the purpose of an innovation is to meet market needs, which entails an improved economy (Curlee &
Goel 1989; Fagerberg 2005).
While the economic development field often has a positive attitude toward innovation, they usually claim that innovation is the driver for economic growth and success. The social change field on the other hand, recognizes that innovation can be both good and bad and the focus is drawn toward the process rather than the consequences of innovation. In addition, the two fields seem to have separate communication channels and information sources, leading to the two directions becoming more divergent (Roback, 2006). One field is more practically oriented, while the other is leaning to be more academic in character. The direction of the sociological innovation field will be used in this study, as it is used extensively in academic research literature and in many different contexts.
Normally, innovations are characterized into sets of contrasting types to better understand how innovations develop. Two types of contrasting types are frequently used to explain innovations, product vs process, and radical vs incremental innovation (Gopalakrishnan & Damanpour, 1997).
2.4.1 Product vs. Process
The distinction between product and process innovations concern the areas and activities affected by an innovation (Halila, 2007). Product innovations are products, services, or other outputs that are introduced for the benefit of customers (Gopalakrishnan & Damanpour, 1997). Product innovation is also defined by Utterback & Abernathy (1975) as any emerging technology or mixture of emerging technologies. In contrast, process innovations are defined as: “tools, devices, and knowledge in throughput technology that mediate between inputs and outputs and are new to an industry, organization, or subunit“(Gopalakrishnan & Damanpour, 1997, p. 18). Process innovation can also be defined as: “a change in the way products are made or delivered” (Tushman and Nadler, 1986, p.512).
2.4.2 Radical vs Incremental
Researchers classify an innovation as either radical or incremental by determining the degree of change associated with it (Gopalakrishnan & Damanpour, 1997). Incremental innovations represent minor modifications to existing products and processes and exploit the potential of current main designs and often reinforces the dominance of established firms (Henderson & Clark, 1990). Incremental innovation is usually a result of inventions and improvements suggested by engineers or users (Halila, 2007).
Radical innovations on the other hand produce fundamental changes in the activities of an organization or an industry, and they have an apparent departing from existing practices (Gopalakrishnan &
Damanpour, 1997). Radical innovation often creates great difficulties for established firms as major technological shifts can be competence destroying, which require firms to acquire completely new skills, abilities, and knowledge to overcome this problem. But, radical innovation can at the same time be the basis for the successful entry of new firms or a complete redefinition of an industry (Anderson &
Tushman, 1986).
These two concepts of innovations have been used extensively in the technological innovation literature since Schumpeter (1942) stated the two dimensions. Following on their concept, Henderson & Clark
20 | P a g e (1990) introduced two new dimensions that enable the classification of additional types of innovations which can be seen in Figure 5 below.
Figure 5. Framework for defining the type of innovation (Henderson & Clark, 1990)
In their framework, radical and incremental innovations are the extremes while modular and architectural are so-called “middle grounds”. Modular innovation only changes the core concepts of a technology, while architectural innovation changes relationships between the core concepts and components (Henderson & Clark, 1990). The former is modular innovation, such as the replacement of analog with digital telephones. By replacing the analog dialing device with a digital one, the innovation changes a core design concept but without changing the architecture of the product. Architectural innovation reconfigures an established system to link together existing components in a new way.
Meaning that the core components and core design concepts are unchanged. For instance, the introduction of a portable fan instead of a large ceiling mounted room fan. The components would largely be the same, but the architecture of the product would be quite different.
2.5 Sustainable Innovation
During the last two decades, innovations that contribute to sustainable development has received increasing attention (Markard, et al., 2012). The term for this type of innovation contributes to an improved environment but also a good economic tradeoff (Halila, 2007). In other words, the adopter of the innovation will expect good market diffusion, good profit, and a positive contribution to the environment. But as with all types of innovations, this might not always be possible. Therefore, sustainable value propositions need to identify tradeoffs between products, and service performance and improved social, economic and environmental effects (Boons & Lüdeke-Freund, 2013).
The concept of sustainable innovation has several similar names of the phenomena, these include
“environmental innovation”, “eco-innovation”, “sustainability innovation”, “sustainability-oriented innovation” and “green innovation”. These different variations of the concept are used largely synonymously, which makes it very difficult to draw a clear line between them (Clausen & Fichter, 2016). But, there is a distinction with those studies that use variations of “sustainable innovation”, which seem to broaden the concept to include a social dimension as well (Schiederig, et al., 2012).
One of the most referenced definitions of a sustainable or “Eco-innovation” is provided by Kemp &
Pearson (2007): “Eco-innovation is the production, application or exploitation of a good service,
21 | P a g e production process, organizational structure, or management or business method that is novel to the firm or user and which results, throughout its life cycle, in a reduction of environmental risk, pollution and the negative impacts of resource use (including energy use) compared to relevant alternatives.” (Kemp and Pearson, 2007, p. 7). This broad definition emphasizes inputs, outputs, and life cycle impacts of the innovation. The concept of sustainable or sustainability innovation however, includes these ecological aspects as well but also takes into account economic and social goals. Instead of focusing on short-term profits, stakeholders should expect firms to convene at a triple bottom of environmental, economic, and social value creation. Considering this background, (Fichter, 2005) defines sustainable innovation as:
“the development and implementation of a radically new or significantly improved technical, organizational, business-related, institutional or social solution that meets a triple bottom line of economic, environmental and social value creation. Sustainable innovation contributes to production and consumption patterns that secure human activity within the earth’s carrying capacities.”(Fichter, 2005, p. 138). This study will follow this concept of sustainable innovation.
In general, it is the effects rather than the intentions that determine if an innovation is environmental (Halila, 2007) or in this case sustainable. According to (Kemp & Pearson, 2007) the relevant criterion to determine whether an innovation is an eco-innovation is: “that its use is less environmentally harmful than the use of relevant alternatives” (Kemp and Pearson, 2007, p. 6). However, this means that an eco- innovation might not lead to an absolute reduction in environmental harm. In the case of the replacement of less eco-friendly innovations, it will likely lead to reduced environmental harm, but it will not diminish completely. Energy-saving lamps are a good example, the lamps are both cost-saving and uses less electricity, making them more environmentally friendly, but the lamp itself will break and have to be replaced at some point, and it still uses electricity.
Although, there are some indications that sustainable innovations have difficulties gaining success in the marketplace and diffuse among potential customers (Halila, 2007). Sustainable innovations have been found to be linked to greater risks, uncertainty, larger investments, and to have more regulations (Jinzhou, 2011). And most of these innovations end up in small market niches (Clausen & Fichter, 2019).
Therefore, it might create additional barriers for consumers and companies to embrace such innovations (Karakaya, et al., 2014).
On the contrary, when considering the direction of the society’s´ development to become more sustainable, organizations in the future will be more incentivized to develop and adopt sustainable innovations, as they will become a basic requirement to hold legitimacy (Li, et al., 2017). Moreover, innovations focusing on sustainability benefits will produce spillover effects during the innovation and the diffusion phase and thus generating a greater competitive advantage for organizations (Rennings, 2000; Montalvo, 2002). According to Veronica, et al. (2019), sustainable innovation and management have already established itself as a strong force for change in business and society.
2.6 Diffusion of Innovations Theory:
The process of adopting new innovations have been studied for over 40 years, and one of the most well- known models to describe innovation adoption has been developed by Rogers and is described in his book, Diffusion of Innovations (Sahin, 2006). A broad variety of different research disciplines have used his model as a framework, everything from political science, communications, economics, education, computers, history, public health, and technology Rogers (1983) & Wejnert (2002) Rao & Kishore (2010).
Rogers’s innovation theory is the most appropriate when investigating the adoption of “green technologies” or “sustainable innovations” as diffusion research offers a large number of studies which deals with innovations and diffusion processes in general, but it also deals with influencing factors that are focused on sustainable innovation and its adoption rate in particular Karkaya, et al. (2014) &
Driessen & Hillebrand (2002). As diffusion research usually investigates technological innovations, the word technology and innovation are used rather synonymously in most research, including this one.
22 | P a g e Rogers defines diffusion as the “process by which an innovation is communicated through certain channels, over time among the members of a social system” (Rogers, 1983, p. 5). As expressed in his definition, the diffusion process of an innovation consists of four key components which are: the 1) innovation, 2) communication channels, 3) time and 4) social systems.
2.6.1 Innovation
The process begins with an innovation which have certain characteristics. These characteristics, as perceived by individuals, help to explain the rate of adoption of innovations. The characteristics are divided in five dimensions: 1) relative advantage, 2) compatibility, 3) complexity, 4) Trialability, and 5) observability (Rogers, 1983).
1. Relative advantage
Refers to the degree of how much better an innovation is perceived than the idea it replaces.
The degree of relative advantage can be measured in several ways, which could include economic terms, convenience, satisfaction, and social prestige factors. Regardless, if the innovation provides a great “objective” advantage, the most important aspect is how an individual perceives the innovation as advantageous. The higher the perceived relative advantage of an innovation, the higher the adoption rate is going to be.
2. Compatibility
Refers to the degree of how an innovation is seen as consistent with existing values, past experiences, and needs of potential adopters. If the innovation or the idea is not compatible with current values or norms within the social system, the adoption process will take longer for the innovation, if compared to one that is compatible. If an incompatible innovation would be adopted, it often requires the adoption of a new value system.
3. Complexity
Refers to the degree of how an innovation is seen as difficult to understand and use. Some innovations are widely understood by members of a social system while others are more complex and will be adopted more slowly. New ideas that are easier to understand will in general be adopted more rapidly compared to innovations that require the user to develop new skills or understandings.
4. Trialability
Refers to the degree of how an innovation can be tried and experimented with. New ideas will be adopted more rapidly if they can be tried before adoption than innovations that cannot. An innovation that is triable reduces the uncertainty to the potential adopter, as it is possible for the individual to learn by doing.
5. Observability
Refers to the degree of how an innovation is visible to others. If an individual can see the results of an innovation more easily, the greater the likelihood of adoption. Visibility of the innovation stimulates peer discussion, as friends, neighbors, and others ask the adopter for innovation- evaluation information. For instance, solar panels on rooftops are highly observable, which speeds up the adoption rate, while other consumer innovations like home-computers are less observable and therefore may diffuse less rapidly.
In general, if the perception of an innovation has a greater relative advantage, compatibility, trialability, observability, and lower complexity, it will be adopted much faster than other innovations. However, these five qualities are not the only parameters that affect the adoption rate of innovations, but according to Rogers (1983), past research indicates that they are the most important characteristics when explaining the adoption rate of innovations, determining between 49 to 87 percent of the variation.
2.6.2 Communication Channels
Communication is defined as “the process by which participants create and share information with one another in order to reach a mutual understanding.” (Rogers, 1983, p17). Diffusion concerns a special
23 | P a g e type of communication as the information exchanged is regarding new ideas. The process of diffusion is at its essence an information exchange between one individual who communicates a new idea to one or various others. In its most basic form, the process involves four stages, firstly, an innovation, secondly, a unit of adoption with knowledge of or experience using the innovation, thirdly, another unit which does not have knowledge of the innovation yet and fourth, a communication channel that connects the two different units. The means for getting messages from one individual to another is called a communication channel. Depending on the type of communication channel, the information exchange between individuals will have different effects on how the innovation will be perceived by the other individual. For instance, mass media channels such as TVs, newspapers, and social media, are the most rapid and efficient channels to inform potential adopters about the existence of an innovation, creating awareness-knowledge of the idea. However, interpersonal channels on the other hand, which involve face to face exchange between individuals, are much more effective in persuading two or several individuals to adopt a new innovation. Most people are more convinced by the usefulness of an innovation, to a larger extent, if it is conveyed to them from another person that is similar to themselves, who previously adopted the innovation. Compared to the evaluation of an innovation based on scientific studies of is performance. This means that at the heart of the diffusion process, potential adopters depend on communicated experience from network-peers that previously adopted the innovation. (Rogers, 1983)
2.6.3 Time
Time is a crucial element in the diffusion process as it is an apart of any communication process and the inclusion of the dimension is one of diffusion research strengths. The time dimension is involved in the diffusion process in three ways, firstly in the innovation-decision process, which refers to how an individual passes from first knowledge of an innovation to either its adoption or rejection. The second parameter refers to the innovativeness of the adopter, which means how relatively early or late an innovation is adopted compared to other members of the system. The third parameter refers to an innovation’s rate of adoption in a social system, normally measured by the number of members that adopt the innovation compared to the whole system population during a specific time period (Rogers, 1983).
2.6.3.1 The Innovation-Decision Process
The innovation-decision process is an “information-seeking and information-processing activity, where an individual is motivated to reduce uncertainty about the advantages and disadvantages of an innovation” (Rogers, 1983, p. 13) which eventually leads to rejection or acceptance of an innovation (Rogers, 1983). Potential adopters are involved in five different steps in the innovation-decision process which are: 1) knowledge, 2) conviction, 3) decision, 4) implementation and 5) confirmation. An illustration can be seen in Figure 6.
Knowledge occurs when the potential adopter is exposed to the innovation’s existence and seeks information about it and gains some understanding of its function. Conviction occurs when the potential adopter forms a favorable or unfavorable attitude toward the innovation. Decision occurs when the potential adopter decides to adopt or reject the innovation. Implementation occurs when the adopter puts the innovation to use. Confirmation occurs when the adopter seeks for additional support for the innovation-decision that was made earlier, and the decision can be reversed if he or she is exposed to conflicting messages about the innovation. (Rogers, 1983)
