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

Abstract

• Digital orientation implies finding ways to create value with digital technologies. • NIHS refers to organizational rejection of external technologies. • EAIA alludes to the fact that employees perceive AI as a threat to their job / career. • The negative impact of NIHS is stronger when EAIA is high. • NIHS is a reaction of employees seeking to reduce the risk of being replaced by AI. This study employs Knowledge-based view (KBV) and Transaction Cost Theory (TCT) to analyze the moderating effect of the Not-Invented-Here Syndrome (NIHS) on the relationship between digital orientation and digital innovation performance when employee's artificial intelligence awareness (EAIA) changes. EAIA alludes to employee's concern about being replaced by artificial intelligence at work. Structural equations were used to test the research model. The key findings reveal that when EAIA is high, the negative impact of the NIHS is stronger. The finding is significant because it confirms that the NIHS, which is associated with organizational rejection of external technologies, is not a phenomenon exclusive to the pre-digital era, but its negative consequences such as biases in the digital technology assessment and neglect or suboptimal use of them, persist in the digital era. Nevertheless, the major contribution demonstrates that the NIHS is not an isolated fact or a product of individuals’ whims or irrationality; in the digital era, the NIHS is above all rational and opportunistic attitude rooted in EAIA. Furthermore, the NIHS becomes a planned response by employees aiming to minimize the risk of losing their jobs due to the impending replacement of digital technologies, particularly those related to automation processes.