Article

Effects of Practioner's Mood on External Idea Evaluation: Implications for Open Innovation

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Abstract

What causes ineffective external idea evaluation in open innovation (OI) still remains an unsolved puzzle, with most such studies focused on creative idea generation or using samples of untrained evaluators. To help better understand the microfoundations of OI, this article examines the effects of mood on external idea evaluation using a practitioner sample. Drawing on “mood-as-an-input” theory, in two behavioral experiments using music induction, cognitive tasks, and idea framing, we test how one's mood affects the innovativeness rating of an externally developed idea, and examine whether this effect is stable within a mood state regardless of the level of creativity (high and low) of an idea. We found that people in happy and sad mood conditions differ in their evaluation of the same external idea, which is explained by differences in assessment of creativity of an idea and not the perceived certainty of its success. Moreover, a given mood state does not affect how ideas low in creativity are rated in their innovativeness, compared to ideas high in creativity. This article by investigating effects of mood within an OI process augments individual level OI literature, while informing the ways external idea evaluation can be managed toward enhancing OI potential.

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... Moreover, only a small percentage of project ideas ever achieve commercial success in an innovation and new product development process, making guidance essential for decision makers during design [3]. The importance and difficulty of the evaluation and selection phase are thus evident [3,4]. To address these challenges in the current business environment, a systematic approach to select the best new project ideas is required to enhance the effectiveness and efficiency of the decision process [5]. ...
... The literature on evaluating and selecting innovative project ideas can be divided into two main categories: qualitative dimensions and decision-support tools with quantitative techniques. The first category focuses on qualitative factors that influence the idea generation and evaluation process, such as the cognitive level [1], behavioral level of participants [4], or other factors that affect the idea generation and evaluation phase [29,30]. The second category mainly employs decision-support tools with quantitative techniques, such as voting, ranking, or scoring, to support decision making [2,3,5]. ...
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Creative Cognition combines original experiments with existing work in cognitive psychology to provide the first explicit account of the cognitive processes and structures that contribute to creative thinking and discovery. Creative Cognition combines original experiments with existing work in cognitive psychology to provide the first explicit account of the cognitive processes and structures that contribute to creative thinking and discovery. In separate chapters, the authors take up visualization, concept formation, categorization, memory retrieval, and problem solving. They describe novel experimental methods for studying creative cognitive processes under controlled laboratory conditions, along with techniques that can be used to generate many different types of inventions and concepts. Unlike traditional approaches, Creative Cognition considers creativity as a product of numerous cognitive processes, each of which helps to set the stage for insight and discovery. It identifies many of these processes as well as general principles of creative cognition that can be applied across a variety of different domains, with examples in artificial intelligence, engineering design, product development, architecture, education, and the visual arts. Following a summary of previous approaches to creativity, the authors present a theoretical model of the creative process. They review research involving an innovative imagery recombination technique, developed by Finke, that clearly demonstrates that creative inventions can be induced in the laboratory. They then describe experiments in category learning that support the provocative claim that the factors constraining category formation similarly constrain imagination and illustrate the role of various memory processes and other strategies in creative problem solving. Bradford Books imprint
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Open innovation has become a mainstream phenomenon in the current business landscape. However, despite the fact that innovation projects generally have different attributes (e.g., complexity and uncertainty), most studies on open innovation have only considered firm-level characteristics (e.g., firm size and firm openness) to determine how to manage open innovation successfully. Project-level studies on open innovation management are still scant—There are only a few conceptual and qualitative articles on the topic, and there is a lack of quantitative insights. Based on a survey designed to collect detailed data from 201 innovation projects undertaken by American firms, this article provides a quantitative cross-project analysis of how two, key innovation project attributes (i.e., complexity and uncertainty) are related to five factors for successful open innovation management: 1) openness level, 2) external partner choice, 3) open innovation mechanism choice, 4) collaboration process formalization, and 5) internal firm practices. This exploratory study contributes to the open innovation literature by highlighting the importance of microfoundations (i.e., innovation project attributes) in successful open innovation management. This article concludes by suggesting a number of relevant project-level future research opportunities in the field of open innovation management, and some methodological recommendations on how to address such opportunities.
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Research Summary Why do incumbent firms frequently reject non‐incremental innovations? Beyond technical, structural, or economic factors, we propose an additional factor: the degree of the top management team’s (TMT) frame flexibility, i.e., their capability to cognitively expand an innovation’s categorical boundaries and to cast the innovation as emotionally‐resonant with the organization’s identity, competencies, and competitive boundaries. We argue that inertial forces generally constrict how TMTs perceive innovations, but that frame flexibility can overcome these constraints, increasing the likelihood of adoption and broadening the organization’s innovation practices. We advance a theoretical model that relaxes the assumption that cognitive frames are static, showing how they become flexible via categorical positioning, and introduce a role for emotional frames that appeal to organizational members’ sentiments and aspirations in innovation adoption. Managerial Summary Confronting a technological change is one of the most difficult challenges facing any incumbent firm. Technological transitions create pressure for leaders to reframe their mental models while continuing to develop existing capabilities and product category variants. Yet at key junctures in a product class and during technological change, a concrete definition of the firm’s innovation boundaries and identity hold a firm hostage to its past. We show how a flexible cognitive frame – coupled with emotional framing – helps leaders and organization members become emotionally engaged in transformation efforts and, in turn, learn about executing non‐incremental innovation over time. At technological transitions, perhaps there is no more important role for leaders than to expand their cognitive frame and to infuse these expanded frames with emotion.
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Understanding the receiving side of creativity has both scientific and practical value. Creativity can add value to organizations after it is perceived, evaluated, and eventually adopted. In this paper, we review four decades of empirical research on the receiving side of creativity scattered across several business and social science fields. A comprehensive framework surfaces out of our review, indicating four groups of factors affecting the evaluation and adoption of creativity, namely, characteristics of target, creator, perceiver, and context. Although the receiving side of creativity has received far less attention than the generative side in management literature, vibrant research efforts in other scientific fields have built a solid foundation to understand creativity receiving in the workplace. We call for more studies on this important topic and discuss how future research could contribute to its development by advancing conceptual clarity, methodological precision, and integration between theories, disciplines, and different sides of the creative process.
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The existing literature offers conflicting advice regarding the types of task instructions that increase the quality of ideas during idea generation. Our research examines three types of task instructions: unbounded (participants are asked to generate any ideas they want), suggestive (participants are asked to propose ideas that improve current product benefits), and prohibitive (participants are asked to propose ideas that do not involve current product benefits). We explore the effectiveness of these three types of task instructions in a field study involving 6406 ideas from eYeka, a global crowdsourcing platform. As compared to unbounded task instructions, we find that suggestive task instructions are significantly related to lower idea originality, feasibility, and value. In addition, we find that idea originality and value are statistically equivalent for unbounded and prohibitive task instructions. Together, our results suggest that either unbounded or prohibitive task instructions should be used when crowdsourcing innovative ideas.
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Purpose Open innovation communities are a growing trend across diverse industries because they provide opportunities of collaborating with customers and exploiting their knowledge effectively. Although open innovation communities can be strategic assets that can help firms innovate, firms nonetheless face the challenge of information overload incurred due to the characteristic of the community. The objective of this paper is to mitigate the problem of information overload in an open innovation environment. Design/methodology/approach This study chose MyStarbucksIdea.com (MSI) as a target open innovation community in which customers share their ideas. We analyzed a large dataset collected from MSI utilizing text mining techniques including TF-IDF and sentiment analysis, while considering both term and non-term features of the dataset. Those features were used to develop classification models to calculate the adoption probability of each idea. Findings The results showed that term and non-term features play important roles in predicting the adoptability of ideas and the best classification accuracy was achieved by the hybrid classification models. In most cases, the precisions of classification models decreased as the number of recommendations increased, while the models' recalls and F1s increased. Originality/value This research dealt with the problem of information overload in an open innovation context. A large amount of customer opinions from an innovation community were examined and a recommendation system to mitigate the problem was proposed. Using the proposed system, the firm can get recommendations for ideas that could be valuable for its business innovation in the idea generation phase, thereby resolving the information overload and enhancing the effectiveness of open innovation.
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In this paper we uncover the emotional factors that contribute to the adoption, or rejection, of different categories of innovation by dairy farmers in Munster, Republic of Ireland. Although emotions have been extensively researched in different fields, little research to date has examined the effects of emotions on farmers' decision making. Munster is the most important region for grass-based dairy farming in Ireland and this type of farming still plays an important role in Ireland's economy and sense of self. By using in-depth interview data from 27 dairy farmers and 6 other participants in the local industry we identified three categories of innovation that were influenced by different emotional pathways. We further uncovered the strong value-driven emotions that underpin the Irish dairy farmers' beliefs about what farming is, and means, and the influence that this has on innovation choices.
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High-level cognitive constructs, such as creativity and intelligence, entail complex and multiple processes, including cognitive control processes. Recent neurocognitive research on these constructs highlight the importance of dynamic interaction across neural network systems and the role of cognitive control processes in guiding such a dynamic interaction. How can we quantitatively examine the extent and ways in which cognitive control contributes to creativity and intelligence? To address this question, we apply a computational network control theory (NCT) approach to structural brain imaging data acquired via diffusion tensor imaging in a large sample of participants, to examine how NCT relates to individual differences in distinct measures of creative ability and intelligence. Recent application of this theory at the neural level is built on a model of brain dynamics, which mathematically models patterns of inter-region activity propagated along the structure of an underlying network. The strength of this approach is its ability to characterize the potential role of each brain region in regulating whole-brain network function based on its anatomical fingerprint and a simplified model of node dynamics. We find that intelligence is related to the ability to “drive” the brain system into easy to reach neural states by the right inferior parietal lobe and lower integration abilities in the left retrosplenial cortex. We also find that creativity is related to the ability to “drive” the brain system into difficult to reach states by the right dorsolateral prefrontal cortex (inferior frontal junction) and higher integration abilities in sensorimotor areas. Furthermore, we found that different facets of creativity—fluency, flexibility, and originality—relate to generally similar but not identical network controllability processes. We relate our findings to general theories on intelligence and creativity.
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We present a large-sample survey of open innovation adoption and management in large firms, a follow-up to a previous study. We repeat some of the survey measures from the first survey, finding that open innovation continues to be widely practiced in about 80 percent of responding firms. Outside-in open innovation is more often practiced than inside-out. In other words, large firms are net takers of free knowledge flows, in part because they are concerned about IP protection for outbound knowledge. When we added new measures to examine open innovation at the project level, we found that firms selectively manage knowledge flows into and out of projects and are formalizing processes as they move from problem definition to execution. We conclude with observations about the organizational challenges and risks of shifting to an open innovation approach.
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The use of external knowledge for innovation (i.e., inbound or outside-in open innovation) has received substantial attention in the innovation literature. However, the “human side” of open innovation is still poorly understood. We consider the role of employee characteristics with respect to predicting firm-level openness. Drawing on the human capital, learning and creativity literatures, we theorize that knowledge diversity of the firm’s employees is positively associated with employees’ ability to identify and absorb external knowledge, which aggregates to increased firm-level openness—that is, firms’ use of external knowledge in their pursuit of innovation. Based on a combination of three data sources, namely, two survey data sources and register data, we find support for our hypothesis that employees’ educational diversity is positively associated with firm-level openness. However, we find no direct association between employees’ work history diversity and firm-level openness but rather—as also hypothesized—a conditional relationship based on educational background, which implies that diverse work history only has a positive impact at higher levels of educational diversity. To reduce endogeneity concerns, we undertake a series of robustness checks.
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Purpose The paper aims to understand how individuals differ in individual absorptive capacity – their ability to recognize, assimilate, transform and exploit external knowledge. These individual absorptive capacities are a key knowledge management building block for an organization’s open innovation practices. The study examines individual antecedents – human capital, social capital and cognition – and innovation outcomes of individual absorptive capacity. Design/methodology/approach This is a quantitative study of 147 employees in a single medium-sized Dutch industrial firm. Based on a survey and structural equation modeling, the antecedents’ prior knowledge diversity, network diversity and cognitive style are examined in relation to individual absorptive capacity. Further, the mediating effects of individual absorptive capacity on its antecedents and innovation outcome are investigated. Findings The main findings are that prior knowledge diversity, external network diversity and a bisociative cognitive style explain differences in individual absorptive capacity. A bisociative cognitive style appears to be the most important factor. Also, this study finds that individual absorptive capacity mediates between its antecedents and individual innovation performance and is therefore a relevant factor to capture value from external knowledge sources. Research limitations/implications The study extends open innovation theory by exploring individual-level factors that explain the ability to capture value from external knowledge. It suggests that differences in open innovation practices are explained by heterogeneity at the individual level. Further, it explains how individuals’ potentials for open innovation are mediated by their absorptive capacities. These insights enable future researchers to further examine individual-level factors in knowledge management practices and to explore cross-level individual-organizational interactions for open innovation. Practical implications This paper highlights that individuals’ engagements in open innovation practices are explained not only by individuals’ motivations but also by their abilities to absorb external knowledge. Further, it helps managers to design knowledge management practices to promote employees’ absorptive capacities, to improve open innovation processes. Originality/value This study investigates the neglected individual-level factors of open innovation practices from a micro-foundational and knowledge management perspective. To our best knowledge, this is the first study to examine individual-level antecedents and outcomes of individual absorptive capacity.
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Can decision-maker roles—roles with responsibility to allocate resources towards ideas—shape which ideas people in those roles view as creative? Prior theory suggests that expertise should influence creativity assessments, yet examples abound of experts in different roles disagreeing about whether the same idea is creative. We build and test a social context model of creative idea recognition to show how decision-maker roles can shift creativity assessments. In an experimental study, we show that relative to non-decision-making roles, decision-making roles inculcate an economic mindset and so lead to downgrading otherwise creative ideas with cues of low social approval. A field study replicates and extends this finding showing that organizational decision-making roles can habitually evoke an economic mindset that shapes creativity assessments. In both studies, decision-maker role, economic mindset, and social approval levels were unrelated to idea usefulness ratings. By integrating work on organizational roles, economic mindsets, and implicit theories of creative ideas, we provide a broadly applicable theoretical framework to describe how social context shapes creativity assessments. This work has important implications for the creativity and innovation literatures, and suggests a new interpretation of the longstanding puzzle of why organizations desire but often reject creative ideas.