Ahuja: Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions

10 important questions on Ahuja: Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions

Ahuja presents a model that explains how established firms create break trough innovations. Which three organizational pathologies (ziekten) that inhibit breakthrough inventions are identified? How can they be overcome?

1. The familiarity trap: favor the familiar
2. The maturity trap: favor the mature
3. The propinquity (nabijheid) trap: favor search for solutions near to existing solutions.

Ahuja argues that by experimenting with novel (no prior experience), emerging (recent/new developed in industry) and pioneering (do not build on any existing technologies) technologies, firms can overcome these traps and create breakthrough inventions.

The theoretical model of Ahuja explain how established firms create fundamental technological breakthroughs. Which key features has this model?

1. Diversity and experimentation are central to successful entrepreneurial activity
2. Dynamics make diversity difficult, leading organizations into learning traps that favor specialization and inhibit experimentation
3. Learning traps are manifested in 3 pathologies: favor familiar, prefer mature and search for solutions close to the existing solutions instead of new solutions. Aka: the familiarity, maturity and propinquity trap.

What are novel, emerging and pioneering technologies?

Novel: new or unfamiliar to the firm
Emerging: are leading-edge technologies that are recent or new to the entire industry
3 Pioneering: have no technological antecedents
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The distinction between invention and innovation is important according to Ahuja. Define the 2 concepts:

Invention = the development of a new idea or an act of creation
Innovation: commercializing of the invention.
> Focus in this study is on the technological importance of an invention in classifying it as breakthrough/radical. Breakthrough invention = foundational inventions that serve as the basis for many subsequent technological developments.

Ahuja's model of breakthrough inventions in established firms begins with three basic premises drawn from the organizational learning literature. Which 3?

1. Organizational behavior is based on routines
2. Routines are oriented to targeted outcomes
3. In successful or established (mature) organizations, routines and actions are path-dependent and therefore based on interpretations and outcomes of past actions.

Research suggests that refinement of familiar technologies are preferred above the exploration of new ones. Path dependence increases the risk over the organization falling into a familiarity trap. Which solution and hypothesis belongs to this? (Ahuja)

Exploring novel technologies (new to the organizations) are an important mechanism by which firms can avoid familiarity traps.
H1: A firm's creation of breakthrough inventions is related to its exploration of novel technologies in a curvilinear (inverted U shaped/kromlijnig) manner.
> Supported

The tendency to favor mature technologies (relatively well known and understood in the industry) can lead to the maturity trap. Which solution and hypothesis has Ahuja formulated with this?

Experimenting with emerging technologies can be a mechanism where the creation of breakthrough inventions increases and the maturity trap is circumvented.
H2: A firm's creation of breakthrough inventions is related to its exploration of emerging technologies in a curvilinear (inverted U shaped) manner.
> Supported

Organizations search for solutions close to the existing solutions. Previously used solutions provide a base of familiarity from which can be moved forward. This can lead to the propinquity trap. What is the solution to this and which hypothesis suits this? (Ahuja)

Experimentation with pioneering technologies may circumvent the propinquity trap. Pioneering technologies build on no existing technologies.
H3A: A firm's creation of breakthrough inventions is related to its exploration of pioneering technologies in a curvilinear (inverted U shaped) manner = not supported
H3B: A firm's creation of breakthrough inventions is related to its exploration of pioneering technologies.= supported
> this difference occurred because it is connected to financial figures rather than through a decline in the number of breakthrough inventions.
3A = cognitive overload interpretation
3B = Negative consequences of excessive experimentation with pioneering technologies

Summarize the study of Ahuja.

After Ahuja identified three organizational pathologies that could hinder the creation of breakthrough inventions in established corporations Ahuja suggested three strategies that could help firms to counter these pathologies. The empirical results provided support for the arguments that experimenting with novel, emerging and pioneering technologies may be ways for organizations to overcome the traps of familiarity, maturity and propinquity. The exploration of novel/emerging technologies is curvilinear associated with subsequent breakthrough inventions: first icnreasing and then decreasing a firm's likelihood of creating breakthroughs. This curve was not identifiable in the case of pioneering technologies.

Explain the capability-rigidity paradox regarding the learning traps of Ahuja: (2)

1. Routines of the large established firm ensure reliable throughput and output also entail formalization and bureaucratization
2. Learning creates its own traps: as organizations develop capabilities that improve immediate performance they often simultaneously reduce competence with respect to new paradigms.

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