This article discusses how rivals influence the intrafirm diffusion process of new technologies.
Interdependences are consistent with rational accounts of diffusion, and inconsistent with social accounts.
Adoption by rivals generates competitive pressure, which accelerates intrafirm diffusion.
Diffusion in the market generates a saturation effect, slowing intrafirm diffusion.
Concentration attenuates interdependences, which suggests that these result from competitive interaction.