Internal Disagreement and Disruptive Technologies
25 Pages Posted: 7 Jun 2022 Last revised: 30 May 2023
Date Written: May 30, 2023
This paper models the adoption by established firms of technologies that are internally disruptive in that different parts of an organization stand to lose or gain from adoption. When agents disagree with a decision, they impose costs on the firm. The paper shows that any resistance to change this yields is often accompanied by others aggrieved should change not occur. Thus, the firm likely cannot avoid disagreement costs regardless of whether they adopt the technology or not. In some cases, depending on their ability to impose costs, such firms may be more likely to adopt technologies due to internal disagreement.
Keywords: disruption, innovation, internal disagreement, shading
JEL Classification: O32, M10
Suggested Citation: Suggested Citation