Resource title

Leveraging resistance to change and the skunk works model of innovation

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Resource description

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.

Resource author

Andrea Fosfuri, Thomas Rønde

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Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7691

Resource license

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