Download this Paper Open PDF in Browser

Motivation and Ability? A Behavioral Perspective on the Pursuit of Radical Invention in Multi-Technology Incumbents

Academy of Management Journal, Forthcoming

53 Pages Posted: 22 Jul 2016 Last revised: 27 Jan 2017

J. P. Eggers

New York University (NYU) - Leonard N. Stern School of Business

Aseem Kaul

University of Minnesota

Date Written: January 26, 2017

Abstract

We examine the role of incumbent firms in developing radical technologies, distinguishing between their motivation and ability to develop radical inventions. We argue that the motivation to pursue radical invention will be strongest when performance is moderately below aspiration, and will weaken as performance either falls substantially below aspiration or rises substantially above aspiration. At the same time, ability will increase with performance, resulting in a behavioral mismatch between ability and motivation – firms overinvest in radical invention when performance is moderately below aspiration and underinvest when performance is substantially above aspiration, with these effects being stronger for broad, multi-technology firms. We show empirical support for our arguments using patent data, using an empirical approach that distinguishes the potential radicalness of an invention from its eventual success. Our study highlights the role of established firms as a source of radical technologies, and examines the behavioral biases that may limit firms from pursuing competence-enhancing radical technologies.

Keywords: Innovation, Aspirations, Search, Radical Innovation, Behavioral Theory

Suggested Citation

Eggers, J. P. and Kaul, Aseem, Motivation and Ability? A Behavioral Perspective on the Pursuit of Radical Invention in Multi-Technology Incumbents (January 26, 2017). Academy of Management Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2812715 or http://dx.doi.org/10.2139/ssrn.2812715

J. Eggers (Contact Author)

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
New York, NY NY 10012
United States

Aseem Kaul

University of Minnesota ( email )

321, 19th Avenue S
3-412 Carlson School of Management
Minneapolis, MN 55455
United States

Paper statistics

Downloads
400
Rank
61,715
Abstract Views
1,226