The Case of the C-TPAT Border Security Initiative: Assessing the Adoption/Persistence Decisions When Dealing With a Novel, Institutionally Driven Administrative Innovation



The current study examines attributes of a diffusion process associated with an institutionally driven administrative innovation (IDAI) that was designed to mitigate international supply chain logistic risk. Using a sample of firms who adopted this type of administrative innovation (AI), we find that managers' adoption and persistence decisions differed from observed behaviors associated with economically driven AIs. For example, with IDAIs, large firms are the characteristic early adopters and the innovation persists in spite of a lack of a clearly compelling economic rationale for its continued support. These findings are drawn from an analysis of respondent data pertaining to Customs-Trade Partnership Against Terrorism—an AI that has been previously identified as being an example of such a development. The results prompt us to rethink on the mechanisms governing AI adoption and persistence decisions and enhance the theoretical richness surrounding research into not only IDAIs but also other related areas such as certified management standards.