The Nature of Underground Innovation: Missionary, User, and Exploratory Orientation

Abstract

Bootlegging and creative deviance studies have described “underground” innovations,  which employees develop without managerial consent but with company benefits in mind. This phenomenon is explained by structural strain theory: when organizations have innovative goals but limited resources, some employees may pursue these goals without permission. Anecdotal observations, however, reveal underground employee behaviors that do not fit this pattern; underground innovations may serve different purposes and remain permanently invisible. We therefore conducted an explorative study of why and how employees develop underground innovations. Based on interviews and survey data at a multinational automotive company, underground innovations have three orientations: missionary (aimed to change company practices), user (to solve work problems), and exploratory (to cater to developers’ passion for exploration). The three orientations differ in their involvement of others, deployed resources, and dissemination efforts. Without missionary orientation, underground innovations are not proactively diffused, inhibiting organizations from reaping their full benefits. We infer a refined theory based on constraints that prevent employees from being openly proactive. Specifically, underground innovation may be triggered by 1. lacking resources to pursue organizational innovation goals, 2. lacking resources and thresholds to improve work processes, and 3. the organization’s inability to match work tasks with innovation workers’ preferences. The last two constraints are easily overlooked, and organizations will capture more value from their human capital by stimulating the diffusion of user and exploratory-oriented projects. 

Keywords: Underground innovation, Bootlegging, Creative deviance, User innovation, Innovation process benefits, Open-source.

JEL Classification: O31, O32