Starting alike, ending different: How cultural dynamics shape design thinking implementation

Design thinking (DT) is widely recognized as effective in fostering technology-based innovation. However, its implementation in organizations often encounters cultural dissonance, as DT culture fundamentally conflicts with organizations' prevailing cultural norms. This study examines how organizational members navigate this dissonance to implement DT effectively to foster innovation. We conducted a comparative case study of two small and medium-sized enterprises (SMEs) that started DT implementation under similar conditions but achieved contrasting outcomes. Using qualitative analysis of real-time and retrospective data from ethnographic fieldwork, we adopt a cultural toolkit lens to develop a culturally informed model of DT implementation effectiveness. Our findings reveal that DT implementation allows for cultural accumulation within an organization—a common initial condition where tensions between Design Culture and Industrial Culture become intensified, leading to cultural dissonance. Effective DT implementation involves cultural alternation, where the organization flexibly shifts between distinct cultural norms as situations evolve and achieves cultural symbiosis. In contrast, ineffective DT implementation results in cultural fixation, where rigid adherence to distinct cultures further creates cultural antagonism. This study advances innovation management and technological innovation scholarship by revealing day-to-day practices that leverage DT for innovation, offering a culturally informed model for effective DT implementation, and reframing DT's role in organizational change.