Tripsas (2009) Flashcards
Identity is referred to as a set of norms that represent shared beliefs for an organization. Technologies that deviate from this identity are called identity-challenging technologies. Two reasons why these are found to be difficult to capitalize on:
- Identity creates a filter that makes organizational members notice and interpret external stimuli consistently with this identity.
- Identity is intertwined in routines and procedures, which makes it difficult to shift identity in order to accommodate identity-challenging technologies.
Organizational identity
Internal & external
- Internal identity: represents a shared understanding by organizational members regarding what is central, distinct, and enduring about an organization
o The ‘Who are we’ - External identity: captures how audiences such’s as customers, suppliers or complementary producers view the org
Identity-challenging technologies
technologies that deviate from the expectations associated with an organizations identity
- The filters imposed by an existing identity may blind those members to identity-challenging technological opportunities. Once identified, it may necessitate a shift in the firms identity.
- Altering of identity can be disruptive and traumatic, attempting to alter only routines, capabilities, or beliefs without acknowledging the broader implications for identity can be problematic
Sources of inertia: technological change and identity
The organizational reasons fall into 2 broad categories: routines/capabilities and cognition
- Established firm have difficulty adapting to competence-destroying technological change that requires the acquisition of new knowledge and routines
- Core competencies can turn into “core rigidities” or “competency traps” that constrain the development of new capabilities
What does identity do that causes interia?
- Identity serves as a lens that filters a firm’s technical choices. It influences what gets noticed, how it is interpreted, and what action is taken
a. Identity-challenging technological opportunities may be missed
b. When it is noticed, identity-based beliefs may shift interpretation of it or established routines may prelude participation - The self-reinforcing dynamics among identity, organizational action, and the industry and technological context create a strong impediment to change
a. For organizations contemplating growth, the dilemma is whether to bypass a potentially attractive identity-challenging technological opportunity in order to maintain a consistent identity, or whether to pursue the technology and embark on the risky endeavor of shifting organizational identity
Key Message
The routines, procedures, information filters, capabilities, knowledge base, and beliefs of an organization all reflect its identity. So when a technology is identity-challenging to an organization – when pursuing it would violate the core beliefs about what the firm represents – organizations face significant obstacles to adopting it.
For organizations contemplating growth, the dilemma is whether to bypass a potentially attractive identity-challenging technological opportunity in order to maintain a consistent identity, or whether to pursue the technology and embark on the risky endeavor of shifting organizational identity