slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Opening the Black Box of “Not-Invented-Here” PowerPoint Presentation
Download Presentation
Opening the Black Box of “Not-Invented-Here”

Loading in 2 Seconds...

play fullscreen
1 / 13

Opening the Black Box of “Not-Invented-Here” - PowerPoint PPT Presentation


  • 174 Views
  • Uploaded on

Opening the Black Box of “Not-Invented-Here” Attitudes, Decision Biases, and Behavioral Consequences David Antons | Frank T. Piller | OUI Conference | 28 July 2014. School of Business and Economics TIME Research Area | Innovation, Strategy and Organisation Group (ISO).

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Opening the Black Box of “Not-Invented-Here”' - david-wilcox


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Opening the Black Box of “Not-Invented-Here”

Attitudes, Decision Biases, and Behavioral Consequences

David Antons | Frank T. Piller| OUI Conference | 28 July 2014

School of Business and Economics

TIME Research Area | Innovation, Strategy and Organisation Group (ISO)

slide2

Not-Invented-Here

A typical challenge to lead-user inventors

  • Bette Claire Nesmith Graham
    • Born in 1924 in Dallas
    • Chief executive secretary for W.W. Overton,Chairman of the Board of the Texas Bank and Trust
  • Inventor of Mistake Out
    • Correction fluid calling it “Mistake Out”
    • Mixing tempera paint with her kitchen blender
    • IBM refused to buy the invention
  • Founder of the Liquid Paper Corporation
    • Founded in 1956, profitable in 1968
    • Sold to Gillette Corporation for $47.5 million in 1979

Source: http://www.women-inventors.com/Bette-Nesmith-Graham.asp

slide3

Not-Invented-Here

A typical challenge to lead-user inventors

  • Bette Claire Nesmith Graham
    • Born in 1924 in Dallas
    • Chief executive secretary for W.W. Overton,Chairman of the Board of the Texas Bank and Trust
  • Inventor of Mistake Out
    • Correction fluid calling it “Mistake Out”
    • Mixing tempera paint with her kitchen blender
    • IBM refused to buy the invention
  • Founder of the Liquid Paper Corporation
    • Founded in 1956, profitable in 1968
    • Sold to Gillette Corporation for $47.5 million in 1979

A typical case of “not invented here” (NIH):

Why do focal firms reject promising solutions provided openly by the periphery in general and users in particular?

Source: http://www.women-inventors.com/Bette-Nesmith-Graham.asp

slide4

Not Researched Yet?

Not-Invented-Here in the literature

„Anecdotalevidencesuggeststhatthisphenomenoninduces R&D workerstodiscountorignoresourcesofknowledgeexternaltotheirteamororganization...“ (Agrawal et al., 2010)

slide5

Towards a framework of Not-Invented-Here

The decision setting

Decision setting: different sources of knowledge externalities

Let‘sbuild a model of NIH

slide6

Not-Invented-Here and external knowledge

When is knowledge perceived as external?

  • Externality with regard to…
    • the (disciplinary) context of the knowledge itself
    • the source from which the knowledge originates
      • Organizational boundaries: intra- and inter-functional (Bstieler & Hemmert 2010; Song & Swink 2009), as well as inter-organizational transfer (Cassiman & Veugelers 2006; Laursen & Salter 2006)
      • Spatial distance (Allen 1977; Salomo et al. 2010; Song et al . 2011)
slide7

Towards a framework of Not-Invented-Here

The inner structure of Not-Invented-Here

Decision setting: different sources of knowledge externalities

  • contextual (disciplinary) externality
  • organizational externality
  • spatial externality

Inner structure of Not-Invented-Here

Let‘sbuild a model of NIH

slide8

Not-Invented-Here

Defining and explaining the bias

We define NIH as a bias triggered by the negatively-shaped attitudeof an individual towards knowledge that has to cross a contextual (disciplinary), spatial or organizational (functional) boundary, resulting in either its sub-optimal utilization or its rejection as behavioral consequences of this attitude bias.

  • Five functions of an attitude (Ajzen 2001; Eagly & Chaiken 1993)
    • Ego-defensive function: maintaining self-worth and self-concept
    • Value-expressive function: expressing and affirming central values
    • Social-adjustive function: fostering social identity
    • Knowledge function: organizing and structuring ambiguous environments
    • Utilitarian function: supporting approach or avoidance decisions
slide9

Not-Invented-Here

Behavioral trajectories of attitudinal functions

slide10

Towards a framework of Not-Invented-Here

The inner structure of Not-Invented-Here

Decision setting: different sources of knowledge externalities

  • contextual (disciplinary) externality
  • organizational externality
  • spatial externality

Inner structure of Not-Invented-Here

Possibly triggered heuristics, e.g.

  • psychological ownership
  • selective information processing
  • confirmation bias

Not-Invented-Here Bias

  • underestimation of utility
  • overestimation of costs

Attitude towards external knowledge

  • ego-defensive function
  • value-expressive function
  • social-adjustive function
  • knowledge function
  • utilitarian function

Let‘sbuild a model of NIH

slide11

Towards a framework of Not-Invented-Here

Behavioral trajectories of attitudinal functions

Decision setting: different sources of knowledge externalities

  • contextual (disciplinary) externality
  • organizational externality
  • spatial externality

Behavioral responses and outcomes

Inner structure of Not-Invented-Here

Behavioral responses regarding external knowledge

  • underutilization
  • rejection

Possibly triggered heuristics, e.g.

  • psychological ownership
  • selective information processing
  • confirmation bias

Performance impact

  • knowledge exchange
  • innovation project
  • firm performance

Not-Invented-Here Bias

  • underestimation of utility
  • overestimation of costs

Attitude towards external knowledge

  • ego-defensive function
  • value-expressive function
  • social-adjustive function
  • knowledge function
  • utilitarian function

Contextual factors, e.g.

  • organizational culture
  • incentives
  • Industry
  • Strategic orientation
  • innovation process
  • absorptive capacity
slide12

Avenues for future research

Applying the NIH framework in different contexts

  • Measurement of Not-Invented-Here
    • Direct vs. indirect attitude measures
  • Consequences of Not-Invented-Here
    • Testing causal claims
    • Solving the empirical puzzle of complementarity (Dahlander & Gann 2010; Grimpe & Kaiser 2010) or substitution (Laursen & Salter 2006) of internal and external R&D
  • Contexts of Not-Invented-Here
    • Prior research focused on organizational and spatial boundaries neglecting the content
  • Countermeasures for Not-Invented-Here
    • De-biasing decision-making vs. inducing compliant behavior through incentives
  • Levels of analysis
    • Bottom-up or top-down evolution of Not-Invented-Here?
slide13

QUESTIONS AND DISCUSSION

Thank you for your attention

David Antons| antons@time.rwth-aachen.de