Chapter 2 focuses on the process of innovation in organizations. The process models of innovation show the sequence of events and activities through which an innovation is conceived, developed, adopted, implemented, and used. The generation-adoption theory of the innovation process is presented. Generation is the process of developing and launching a product or practice new to the market, adoption is the process of selecting and implementing a product or practice new to the organization. Generation is more widely recognized than adoption, but performance consequences of innovation in organizations depend on both. The chapter then concentrates on the innovation adoption process. An overview of research on the drivers of innovation adoption is provided and exemplified by a study of the determinants of the three main stages of the adoption process: initiation, adoption decision, and implementation. The study theorizes and examines similarities and dissimilarities of the environmental, organizational, and managerial characteristics that foster or impede stages of the adoption process. The illustrated study does not account for the influence of innovation attributes on adoption; thus, a summary of the findings of research on the innovation attribute-innovation adoption relationship is presented. The chapter ends with suggestions for new queries on the generation-adoption theory of innovation.