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Not-Invented-Here Syndrome And Innovation Performance: The Confounding Effect Of Innovation Capabilities As Organisational Routines In Service Firms

Author

Listed:
  • JOSE ARIAS-PÉREZ

    (Department of Administrative Sciences, Universidad de Antioquia, P.O. Box 1226, Colombia)

  • GEOVANNY PERDOMO-CHARRY

    (School of Management, CEIPA, P.O. Box 055450, Medellín, Colombia)

  • CARLOS CASTAÑO-RÍOS

    (CARLOS CASTAÑO-RÍOS, Department of Accounting Sciences, Universidad de Antioquia, P.O. Box 1226, Medellín)

Abstract

Currently, it is commonly accepted that the not-invented-here syndrome (NIHS) refers to internal resistance against external knowledge, and that it has devastating consequences on innovation performance (IP). Nevertheless, studies on organisational practices that neutralise NIHS are incipient. Moreover, it is accepted that innovation capabilities (ICs) are perhaps the organisational routines with the highest positive influence on IP. In this study, based on the organisational routine framework and agency theory, we propose a model in which ICs (i.e., client-focused, marketing-focused, and technology-focused ICs) have a confounding effect on an NIHS–IP relation. Structural equation modelling (SEM) was used to test the proposed model with survey data from a sample of 161 service firms. We find that (1) NIHS influences IP negatively, and (2) ICs weaken NIHS–IP relation, practically turning it null. Finally, this paper provides insights for researchers and managers regarding a possible overestimation of the negative effects of NIHS on the literature.

Suggested Citation

  • Jose Arias-Pérez & Geovanny Perdomo-Charry & Carlos Castaño-Ríos, 2017. "Not-Invented-Here Syndrome And Innovation Performance: The Confounding Effect Of Innovation Capabilities As Organisational Routines In Service Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-20, January.
  • Handle: RePEc:wsi:ijimxx:v:21:y:2017:i:01:n:s1363919617500360
    DOI: 10.1142/S1363919617500360
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    1. Dev K. Dutta & Mary Beth Rousseau, 2019. "Alliance Experience, Industry Conditions, And External Technology Commercialisation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-24, January.
    2. Arias-Pérez, José & Vélez-Jaramillo, Juan, 2022. "Ignoring the three-way interaction of digital orientation, Not-invented-here syndrome and employee's artificial intelligence awareness in digital innovation performance: A recipe for failure," Technological Forecasting and Social Change, Elsevier, vol. 174(C).

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