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Abstract

In this essay, we discuss how collective identity shapes and constrains innovation in organizations and argue that this phenomenon deserves more attention from innovation scholars. Drawing on the existing literature, we distinguish three mechanisms through which a collective identity affects innovation – top management team cognition and emotion, organizational member resistance, and external stakeholder resistance – and illustrate these mechanisms by drawing on the example of symphony orchestras. Orchestras have faced shrinking audiences and significant declines in revenue for decades, yet their ability to innovate in response has been constrained by the very traditional collective identity of the “symphony orchestra”. We go on to argue that innovation researchers need to pay more attention to the mechanisms through which collective identity limits and shapes innovation, to investigate potential strategies that organizations can use to manage the tension between collective identity and innovation, and to better understand how collective identity can be used as a resource in innovation. (Published version available on IOM site: 10.1080/14479338.2020.1742127).

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... Juggling innovation, experimenting and protecting core values are associated with numerous tensions, as organisations often introduce new and economically viable business models but fail to abandon old and economically problematic ones (Cozzolino et al., 2018;Kavanagh, 2018;Rothmann & Koch, 2014). Although digital transformation may threaten an industry's collective identity, the identity itself also shapes and constrains innovative responses, a subject that has received 'remarkably little attention' to date (Kavanagh et al., 2021). ...
... Battilana and Lee (2014) study of social enterprises highlighted how they combine business and charity so as to defend the core activities that are perceived as irreplaceable. Art and heritage institutions similarly adapt their business models by expanding their core activities to include new types of experiences in an attempt to attract users (Alshawaaf & Lee, 2021;Coblence & Sabatier, 2014;Kavanagh, 2018;Kavanagh et al., 2021). ...
... Cozzolino et al. (2018Cozzolino et al. ( , p. 1195 suggested three potential explanations for the willingness to defend the incumbent business model and core activities: difficulties in exploring new options, perceiving value (as worth) in the incumbent business model and unexpected setbacks in the market. Kavanagh et al. (2021) argued that further research is needed, particularly in terms of the second of these explanations. They stated that defensive or limited innovation can be tied to collective identity, which can limit innovation through top management cognition and emotion, organisational member resistance and wider stakeholder resistance. ...
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This paper discusses how established industries adapt to digital transformation. While digitalisation is perceived as an impetus for change, either due to the opportunities or threats it brings about, not all industries are able to change unlimitedly. We seek to understand digital transformation concerning products and services perceived to have a wider public value. Our empirical case is the newspaper industry in Norway, which has a strong collective identity tied to the societal function of independent journalism. We find that an industry with a resilient identity leaning towards preservation can learn how to use the digital space to adapt and innovate effectively. The adaptation and innovation processes are shaped by the interplay between the collective identity and the nature of digital work and innovation. The outcome is a continued emphasis on retaining the core mission but with an increasingly pragmatic approach to how and in what form it is safeguarded. Continuous collaborative experimentation and deliberation on the fit between innovations and the collective identity is a key change mechanism. Our study contributes to a better understanding of collective identities and their interplay with innovation.
... This motivation of historical argumentation is associated with the most traditional perspective applied to heritage, the commemorative [27], which, while recognizing the role of heritage in shaping collective identities, is frequently related to a single narrative and a hard, objective identity defined as closed [12]. However, heritage must be understood in a process of construction and reconstruction, not static, from contemporaneity with new meanings [28,29]. Indeed, every transmission process entails reinterpreting the past giving it new meanings from the present, in a retrospective and prospective sense, based on interests to legitimize a collective identity, because memory preserves from the past what is capable of being alive in the present of a group defined on a territorial scale [30]. ...
... Thus, heritage is presented as useful, not only from its economic profitability, but also as a historical source for the construction and reconstruction of the various existing memories around the same heritage element [31,32]. This utility perspective makes even more sense if we pay attention to the spatial, considering, on the one hand, the diverse interpretations to which a heritage element is exposed according to the scale; and, on the other hand, the multiple, hybrid identities in permanent transformation [12,28,29] resulting from the exchange of people and ideas throughout the world. ...
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Heritage and space establish reciprocal relations that have been studied for decades. On the one hand, heritage has been described as an inherently spatial phenomenon. On the other hand, places are defined according to the attributes that make up their identity, among which heritage is a fundamental instrument. On the basis of the idea that education plays an important role in the socialization process, transmitted by the inherited culture, to integrate each subject within the specific community, and the notion of scale as the closest to heritage, we defined as general objectives to determine the relationships between geographic scales, heritage perspective and the didactic potential granted to heritage, within the framework of the construction of collective identities, and to contrast the perspectives of students and teachers regarding the geographical scale, heritage and their didactic potential, deducing implications for educational practices. In order to answer to these objectives, we carried out a non-experimental quantitative research, with a relational-predictive objective. Specifically, we used a survey method, being the context the whole of the local scale (Fuente Álamo, Murcia, Spain) and acting as participants all students and teachers of Secondary Education (n = 459) linked to social sciences. They answered the Test on Didactic Potentiality of Heritage according to Scale (TDPHS), and its information was analysed through different procedures (Spearman’s correlations, descriptive statistics, Mann-Whitney U…), using the statistical programs SPSS. The results show, on the one hand, that the scalar perspective scores are generally low, heritage perspective is consistent with the consideration of the scales, and the perceived didactic potential in relation to heritage is related to the importance given to each of the scales; and, on the other hand, the contrast in the perspectives of students and teachers regarding the geographical scale, heritage and their didactic potential is minimal.
... How should fuzziness in NPD be reduced? Authors proposed to reduce fuzziness by implementing mainstream/legacy methods such as customer and competitor analysis, fusing customer needs into products, integrating upper management, studying rivals and their products [32], customer participation [33], and customer relationship [34,35], regular direct contact with customers [6], the knowledge about competitors and likely competitive moves [36], integrating the customer regarding the company's products, services, and technologies, and the firm's employees [37][38][39][40][41][42], competitors' and technologies' limits and keeping the value of crucial variables within predetermined limits [21], firms' in-house capability and expertise [43], matching the customer needs with a firm's fabricating potential [44], using a diverse assessment group [45], experiments and corporate entrepreneurship [46], and collective identity [47]. ...
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If the dynamic fuzziness of the Front End (FE) part of New Product Development (NPD) cannot be treated in a timely manner, fuzziness accumulates over other parts of NPD hence NPD can result in costly mistakes. The authors tried to remedy this strategically critical problem by implementing mainstream theoretical/methodological approaches, but they found inherent weaknesses of each. The purpose of this study is to bring an objective and intelligent decision-making model to FE so as to lessen fuzziness of it. Model quantizes ideas based on pillars, and re-clusters them with every new idea addition thanks to combining non-mainstream approaches like K-means, distance-based algorithm with gravitational theory inspiration, an accumulation of idea and an exponential function. Study showed that fuzziness of FE can be lessened by quantizing, and objectively managing. The founded core reasons of fuzziness can guide practitioners and authors for better understanding and coping with fuzziness of FE; moreover, the model can be used by companies. Introducing an objective and intelligent decision-making model working like a human brain to FE is a unique idea that has not been tried ever before.
... Managers generate a cognitive schema that integrates their understanding of organizational and exogenous information with a set of outcome expectations (Martins et al., 2015). Often, collective identity affects innovation within firms through management team cognition, member and stakeholder resistance (e.g., Kavanagh, Perkmann & Phillips, 2020). Consistent with theories of strategic choice and planned behavior, managers make business model choices intended to bring about preferred outcomes that balance issues of shared cognition, identity, and goals. ...
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While several practice-based approaches of business model design suggest ways to create new business models, there is limited understanding of why and how business models change. This exploratory study employs neural network analysis to simulate business model design and business model change. We conceptualize business model design as a schema of the organization's critical resources, transactions, and value proposition. Elements of the schema are connected in a simple neural network. The network evolves based on a constraint satisfaction network until it converges to a stable state of a coherent business model. An in-depth case study of an entrepreneurial venture provides a real-world example to test the analytical framework. Using data from the case study, we run multiple simulations of business model design and business model change. The results suggest that business model change can be understood as a form of constraint satisfaction, linking managerial cognition with business model change. The simulation approach also helps identify possible, but unrealized business models. This novel approach paves the way for new research and practice in business model design and change.
Chapter
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The purpose of this paper is to analyze how a firm responds to a challenge from a transformational technology that poses a threat to its historical business model. We extend Christensen’s theory of disruptive technologies to undertake this analysis. The paper makes two contributions: the first is to extend theory and the second is to learn from the example of Kodak’s response to digital photography. Our extensions to existing theory include considerations of organizational change, and the culture of the organization. Information technology has the potential to transform industries through the creation of new digital products and services. Kodak’s middle managers, culture and rigid, bureaucratic structure hindered a fast response to new technology which dramatically changed the process of capturing and sharing images. Film is a physical, chemical product, and despite a succession of new CEOs, Kodak’s middle managers were unable to make a transition to think digitally. Kodak has experienced a nearly 80% decline in its workforce, loss of market share, a tumbling stock price, and significant internal turmoil as a result of its failure to take advantage of this new technology.
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Organizations in an emerging organizational population face an identity problem. Collectively, organizations cannot yet rely on a coherent and stable definition of what membership in that new industry means. Individually, each organization must also establish its own distinctive identity to differentiate itself from competitors and secure resources. To explore the relationship between differentiation and the consolidation of recognizable identity element clusters, we examine the emergence of organizational form in the early years of the Arizona charter school industry. This industry is particularly interesting for scholars studying institutional processes because the legislative mandate of the new industry was for schools to experiment and provide education in an unconventional manner. Thus, the legislative definition of the organizational form or template for the charter school identity was intentionally underspecified. Using inductive analysis and regression models, we examine the process of identity realization occurring among charter schools and assess how the local institutional context of charter schools affected the realization process. The analyses demonstrate that new industries may come to be characterized by multiple element clusters; a single label for an organizational form may be linked to different combinations of identity elements. Our results also demonstrate that identity realization at the organizational level occurs through mimicry and differentiation processes and is facilitated by the local institutional context. In particular, the diversity of organizational resources available to industry entrepreneurs enables identity differentiation from one's peers.
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