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Allocating resources to disruptive innovation projects : challenging mental models and overcoming management resistance

Thomond, Peter N. & Lettice, Fiona (2008) Allocating resources to disruptive innovation projects : challenging mental models and overcoming management resistance. International Journal of Technology Management, 44(1/2), pp. 140-159.

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Abstract

This research, based on four in-depth case studies, probes an overlooked unit of analysis in innovation management literature, namely management action and cognition, and offers a new qualitative contribution into resource allocation approaches that support radical innovation. The interpretivist approach revealed that a management team’s resource dependencies and prevailing mental models underpin resource allocation routines which prevent managers from pursuing radical innovations; of particular interest were innovations that disrupt and re-shape the exiting terms of economic engagement in established industries. It was found that managers with restrictive mental models will adopt up to five disruptive innovation rejection strategies: rewarding incrementalism, ignoring the positive aspects of disruptive innovations, focusing on historical perceptions of success creating perceptions of success with high effort and holding beliefs in the face of disconfirming information. Initial longitudinal data suggests that rejection strategies can be overcome with holistic portfolio approaches.

Impact and interest:

3 citations in Scopus
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1 citations in Web of Science®

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ID Code: 6656
Item Type: Journal Article
Additional Information: Original title: "Changing Mindsets: Overcoming Management Resistance to Funding Disruptive Innovation Projects"
Additional URLs:
Keywords: Disruptive Innovation, Funding routines, Portfolio Management, Peter Thomond
DOI: 10.1504/IJTM.2008.020702
ISSN: 0267-5730
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Innovation and Technology Management (150307)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Deposited On: 26 Mar 2007
Last Modified: 11 Aug 2011 03:50

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