Organizational Decision-making in the Appropriation of Technological Innovation: Cognitive and Political Dimensions

Abstract

Outcomes of innovation may depend upon the user's decision processes in its appropriation. The context for the user's decision-making comprises three interdependent elements: (1) the innovation pool; (2) the user; and (3) the supplier of the innovation. User decisions are seen as a series of four interlocking decision episodes. During the first two episodes (agenda formation and selection) the problem is defined and a solution chosen. In the latter two episodes (implementation and usage) the innovation is adopted and used. Appropriation may depend on dual modification of the innovation and organizational practices until the innovation meets the unique requirements of the user. Cognitive and political variables relevant to technological innovation are suggested and explored by drawing upon qualitative comparisons across seven cases of technological innovation in British manufacturing firms. Particular problems occur when users have inadequate knowledge bases, overuse heuristics and analogies, and have conflicting beliefs about the chosen innovation. The extent to which cognitive variables impose on success with the innovation may be mediated by political processes, and may also interact with national culture. Focus is on the processes during the early episodes of agenda formation and selection on the grounds that problems engendered here carry over to implementation.