Leveraging Resistance to Change and the Skunk Works Model of Innovation
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Leveraging Resistance to Change and the Skunk Works Model of Innovation. / Fosfuri, Andrea; Rønde, Thomas.
Centre for Industial Economics, Department of Economics, University of Copenhagen, 2007.Research output: Working paper › Research
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TY - UNPB
T1 - Leveraging Resistance to Change and the Skunk Works Model of Innovation
AU - Fosfuri, Andrea
AU - Rønde, Thomas
N1 - JEL Classification: L2, M12, M54, O31, O32
PY - 2007
Y1 - 2007
N2 - We study a situation in which an R&D department promotes the introduction of an innovation that results in costly re-adjustments for a production department. In response, the production department tries to resist change by improving the existing technology. We show that firms balancing the strengths of the two departments perform better. As a negative effect, resistance to change might distort the R&D department's effort away from radical innovations. The firm can solve this problem by implementing the so-called skunk works model of innovation where the R&D department is isolated from the rest of the organization. Several implications for managing resistance to change and for the optimal design of R&D activities are derived
AB - We study a situation in which an R&D department promotes the introduction of an innovation that results in costly re-adjustments for a production department. In response, the production department tries to resist change by improving the existing technology. We show that firms balancing the strengths of the two departments perform better. As a negative effect, resistance to change might distort the R&D department's effort away from radical innovations. The firm can solve this problem by implementing the so-called skunk works model of innovation where the R&D department is isolated from the rest of the organization. Several implications for managing resistance to change and for the optimal design of R&D activities are derived
KW - Faculty of Social Sciences
KW - resistance to change
KW - innovation
KW - skunk works model
KW - contest
M3 - Working paper
BT - Leveraging Resistance to Change and the Skunk Works Model of Innovation
PB - Centre for Industial Economics, Department of Economics, University of Copenhagen
ER -
ID: 886041