Leveraging Resistance to Change and the Skunk Works Model of Innovation

Andrea Fosfuri, Thomas Rønde

    Research output: Working paperResearch

    Abstract

    We study a situation in which an R&D department promotes the introduction of an innovation, which results in costly re-adjustments for production workers. 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. This principle is employed to derive several implications concerning the hiring of talents, monetary incentives, and technology investment policies. 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. Resistance to change, innovation, skunk works model, contest.
    We study a situation in which an R&D department promotes the introduction of an innovation, which results in costly re-adjustments for production workers. 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. This principle is employed to derive several implications concerning the hiring of talents, monetary incentives, and technology investment policies. 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. Resistance to change, innovation, skunk works model, contest.
    LanguageEnglish
    Place of PublicationFrederiksberg
    PublisherCentre for Economic and Business Research, Copenhagen Business School
    Number of pages26
    StatePublished - 2007

    Keywords

      Cite this

      Fosfuri, A., & Rønde, T. (2007). Leveraging Resistance to Change and the Skunk Works Model of Innovation. Frederiksberg: Centre for Economic and Business Research, Copenhagen Business School.
      Fosfuri, Andrea ; Rønde, Thomas. / Leveraging Resistance to Change and the Skunk Works Model of Innovation. Frederiksberg : Centre for Economic and Business Research, Copenhagen Business School, 2007.
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      Fosfuri, A & Rønde, T 2007 'Leveraging Resistance to Change and the Skunk Works Model of Innovation' Centre for Economic and Business Research, Copenhagen Business School, Frederiksberg.

      Leveraging Resistance to Change and the Skunk Works Model of Innovation. / Fosfuri, Andrea; Rønde, Thomas.

      Frederiksberg : Centre for Economic and Business Research, Copenhagen Business School, 2007.

      Research output: Working paperResearch

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      Fosfuri A, Rønde T. Leveraging Resistance to Change and the Skunk Works Model of Innovation. Frederiksberg: Centre for Economic and Business Research, Copenhagen Business School. 2007.