By Raghu Garud, Praveen Rattan Nayyar, Zur Baruch Shapira, James G. March
The capability for expertise companies to develop and alter with the days is associated with how those companies increase and industry technological concepts. regardless of the significance of technological adjustments for company energy, there are documented situations of organisations failing to capitalize on technological possibilities. Innovation final result is contingent upon a fit among a firm's inner services and its exterior context. Technological Innovation addresses particular ways that the slender odds of company good fortune should be stronger. It analyzes why businesses pick out convinced new applied sciences, from a technological, fiscal, and institutional standpoint. in response to multidisciplinary learn on technological selection, the publication bridges study and perform to supply an enlightening and useful study
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Extra resources for Technological innovation : oversights and foresights
Sample text
Consequently, decision makers may choose to commit Type II errors even though these errors may be more detrimental to firms than Type I errors due to opportunity costs. Decision makers' risk tendencies are, in fact, determined by the utilities of the two errors. Important to firms are the costs associated with the two errors. " However, consistent with March's (1991) notion of exploration, reducing Type II error (while increasing Type I error) may be the right avenue in many situations characterized by rapid change and innovation.
As March (1991) noted, firms often get caught in a conflict between the need to explore new opportunities and the tendency to exploit existing resources. Consistent with March's focus, the framework of aspirations and resources may be used to analyze intrafirm decisions as well. Following the analysis of risk perceptions and attitudes in a large sample of managers, March and Shapira (1987,1992) developed a model that relates risk tendencies to resources and attention to a target such as an aspiration level.
Others, who have adopted an institutional perspective, offer other social, cognitive, and political forces that shape the evolution and adoption of technologies that develop in a path-dependent, cumulative manner (David, 1985; Arthur, 1988; Powell, 1991). This perspective recognizes that institutionalized rules and practices create a context that shapes the cognition of technology champions (Garud & Rappa, 1994). Those operating within such a professionalized field choose within a set of institutional beliefs, not simply because they are the best, but because conformance confers legitimacy (Scott, 1987).