Integrating organisational readiness and innovation diffusion for accelerated energy efficiency technology adoption: An SEM–ABM approach

Abstract

This study elucidates the adoption of Energy Efficiency Technologies (EETs) within Indonesia's building management sector by integrating the theories of Organisational Readiness for Change (ORC) and Diffusion of Innovations (DOI). Principal Component Analysis, K-Means clustering, Structural Equation Modelling (SEM), and Agent-Based Modelling (ABM) were used to look at survey data from 263 businesses in Greater Jakarta that run office, hotel, and apartment buildings. The combined SEM-ABM method connected micro-level causes with macro-level diffusion patterns. Principal Component Analysis identified a predominant readiness dimension (61.56% variance) that includes policy, technical, financial, and stakeholder factors. SEM verified that Policy Support has a substantial direct impact on adoption (β=0.38, p<0.001) and indirect effects through Technology Awareness and Implementation (total β=0.64), while Employee Capacity also proved significant (β=0.21, p=0.012). The model accounted for 62.4% of the variance in adoption. ABM simulations illustrated that policy shocks expedited adoption from 157 to 166 firms via nonlinear cascades, whereas baseline scenarios indicated gradual, readiness-driven uptake. Policymakers can make targeted interventions that match the readiness of an organisation with outside stimuli. Enhancing internal readiness via Stakeholder Engagement, Policy Support, and Employee Capacity yields more sustainable adoption compared to relying solely on short-term incentives. The integrated SEM-ABM framework effectively addresses theoretical deficiencies between organisational change and innovation diffusion, offering a comprehensive methodology for comprehending and expediting sustainable technology adoption.