Not-invented-here Syndrome Research Articles

Mitigating not-invented-here syndrome in consultant knowledge transfer by developing appropriate implementation guidelines

Purpose This study aims to propose a framework for the development of implementation guidelines (IGs) that can help consultants mitigate not-invented-here (NIH) syndrome during a consultant intervention as a specific type of knowledge transfer. Design/methodology/approach The authors adopted a design science research approach for proposing an NIH-mitigating IG development framework. Inspired by findings and rich primary data from two consultant interventions, the authors, through theory building, ground five core principles in the general theory of NIH attitude functions. Finally, the authors revisit two consultant interventions to identify and describe mechanisms that led to the enactment of the principles. Findings The proposed framework provides five principles for developing NIH-mitigating IGs. The present research proposes that successful knowledge transfer and the mitigation of NIH syndrome as a prerequisite for this success are conditioned by adequately developed IGs. Originality/value The originality and value of the present research lie in the proposed NIH-mitigating IG development framework containing a set of principles for IG development as a proactive rather than reactive approach to NIH mitigation. To the best of the authors’ knowledge, this is the first research to address the problematics of mitigating NIH syndrome in consultant knowledge transfer by focusing on developing appropriate IGs. By developing and implementing IGs based on the proposed framework, a more successful transfer of knowledge from consultants to clients should take place, thus, increasing the value that clients receive from consultancy.

Enhancing open innovation: Managing not invented here syndrome in collaborative projects

Despite having consensus on the negative relationship between individuals' biased attitude towards externally generated ideas and the applicability of inbound open innovation (OI) as a strategy, we find a gap in the literature regarding how individual unwillingness – not-invented-here syndrome (NIHS) – actually affects the innovation performance achieved through collaboration and what management tools are available to counter it. This study addresses these two questions by testing the relationship between NIHS and innovation performance and the impact of innovation climate as a way to reduce this negative attitude. Based on quantitative survey data collected from 250 firms across France, Italy, Spain, and Sweden, we confirm that innovation climate is a useful management tool for managing NIHS by opening individuals towards external ideas, ultimately helping firms to improve their innovation performance through collaboration. Most interestingly, we also find that the impact of NIHS on inbound open innovation performance achieved through a collaborative project is mediated through external social capital rather than having a direct impact. Since external social capital serves as a link between two collaborating firms, it's weakening caused by NIHS, subsequently leads to reduced project performance achieved through the inbound OI strategy.

Antecedents and innovation outcomes of not‐invented‐here syndrome – Examination at individual, managerial, and organizational levels

A negatively shaped attitude-based bias towards external knowledge—the not-invented-here (NIH) syndrome—may constitute a significant obstacle for effective adoption of external knowledge and impair organizational innovativeness. The goal of this study is to shed light to the question how organizational and managerial features drive individual NIH, and how NIH connects further to individual innovativeness. Analysis of survey data collected from 93 employees reveals a joint effect of person-organization fit and leader-member exchange on NIH, and a negative association between NIH and innovative work behavior. Contrary to expectations, person-organization fit and perceived innovativeness of organizational culture do not have joint effects on NIH. The findings contribute to the development of a theoretical model of the interplay between individual-, managerial- and organizational-level antecedents and consequences of the NIH syndrome.

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

• 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.

Board Independence and Acquisitions of External Knowledge: Overcoming the NIH Syndrome

The not-invented-here (NIH) syndrome, defined as a negative attitude toward outside knowledge, prevents organizations from absorbing external knowledge to generate further innovations. We argue that corporate-level actions can play an important role in neutralizing the NIH syndrome. In particular, we examine the role of independent members of boards of directors, given their monitoring and advisory functions. We hypothesize and show the existence of a positive link between the presence of independent directors on the board and the propensity to acquire outside knowledge. Furthermore, this relationship is more pronounced for companies that are more likely to suffer from the NIH syndrome and weaker when the independent directors’ monitoring power is limited by the power of the CEOs. Overall, our findings suggest that the effect is primarily driven by the supervisory function of the independent directors on the boards.

How open innovation practices drive innovation performance: moderated-mediation in the interplay between overcoming syndromes and capabilities

PurposeThis paper aims to investigate whether and under what conditions open innovation (OI) drives innovation performance (IP) in the financial sector. To this end, the paper first analyzes in-depth the indirect effect of overcoming two attitudinal mediators, namely, not-invented-here syndrome (NIHS) and not-sold-here syndrome (NSHS). It then uses dynamic capabilities theory to hypothesize that the indirect effects are moderated by absorptive and desorptive capabilities, respectively.Design/methodology/approachThe authors perform an empirical study of major Spanish financial entities. Data are collected from 288 questionnaires from employees at branches of 13 bank entities. Regression analysis tests the mediating role of overcoming syndromes and the moderated-mediating role of dynamic capabilities in the OI–IP relationship.FindingsResults confirm the indirect effect of overcoming NIHS on the relationship between outside-in OI and IP, and the indirect effect of overcoming NSHS on the relationship between inside-out OI and IP. Further, absorptive capacity moderates the indirect effect between outside-in OI practices and IP by overcoming NIHS, and desorptive capacity moderates the indirect effect between inside-out OI practices and IP by overcoming NSHS.Originality/valueThis paper advances knowledge by explaining discrepancies in the sign of the OI–IP relationship. By introducing comprehensive absorptive and desorptive capacity models to explain OI, it advocates an integrative framework to understand OI activities and their outcomes. Managers should develop these capacities using human talent training and cultural values development to mitigate NIHS and NSHS and optimize firms’ OI efforts and the improved IP benefits derived from them.

Containing the Not-Invented-Here Syndrome in external knowledge absorption and open innovation: The role of indirect countermeasures

This paper builds new theory and provides supporting evidence to contain the Not-Invented-Here Syndrome (NIHS) – a persistent decision-making error arising from an attitude-based bias against external knowledge. Conceptually, we draw on the 4i framework of organizational learning to develop a novel process perspective on NIHS. This allows us not only to unpack how and where NIHS impedes organizational learning, but also to identify the key requirements for effective NIHS countermeasures. Importantly, countermeasures fall into two categories: those that seek to change the negative attitude directly (direct NIHS countermeasures) and those that seek to attenuate the behavioral impact of negative attitudes without addressing the attitudes as such (indirect NIHS countermeasures). While the evidence base on direct NIHS countermeasures has grown over the last decade, indirect NIHS countermeasures have received little research attention. To address this gap, we adopt a mixed methods research design composed of two complementary empirical studies – the first qualitative and the second quantitative. Study 1 explores the prevalence of distinct NIHS countermeasures in collaborative R&D practice. Based on 32 interviews and three focus group meetings with R&D employees, we find that a broad array of primarily direct NIHS countermeasures is employed in R&D practice. Study 2 addresses the scarcity of scholarly and managerial insights on indirect NIHS countermeasures by testing the effectiveness of perspective taking as a debiasing technique to contain negative attitudes at the level of the individual. Based on quantitative survey data from 565 global R&D projects, it provides empirical evidence not only for the prevalence and negative effects of NIHS on project success as mediated by external knowledge absorption, but also for the effectiveness of perspective taking as an exemplary indirect NIHS countermeasure.

NOT-INVENTED-HERE SYNDROME AND INNOVATION PERFORMANCE: THE CONFOUNDING EFFECT OF INNOVATION CAPABILITIES AS ORGANISATIONAL ROUTINES IN SERVICE FIRMS

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.

In Search for the Not-Invented-Here Syndrome: The Role of Knowledge Sources and Firm Success

The not-invented-here (NIH) syndrome refers to a negative attitude of employees against externally developed knowledge. We show that the sources of external knowledge and the success of the company that acquires knowledge externally are factors that impact the occurrence of an NIH syndrome. In line with social identity theory, we hypothesize that internal resistance is most likely to occur if knowledge is acquired from similar organizations. This hypothesis is supported by our empirical finding that internal resistance against external knowledge is more likely to occur when knowledge is acquired from competitors rather than from suppliers, customers or universities. Further, we show that the NIH syndrome is more likely to arise within successful companies that acquire knowledge from competitors. This is in line with our hypothesis that firm success increases the extent to which employees identify themselves with their company resulting in stronger in-group favoritism and a superior tendency to reject externally generated knowledge.

"Curing the Not-Invented-Here Syndrome: Symptoms, Consequences, and Therapies"

This paper explores the Not-Invented-Here Syndrome (NIHS) as an attitude-based bias towards external knowledge. Drawing on data from 583 global R&D projects, it quantifies the NIHS effect and shows...

In search for the not‐invented‐here syndrome: the role of knowledge sources and firm success

The not‐invented‐here (NIH) syndrome refers to a negative attitude of employees against externally developed knowledge. We show that the sources of external knowledge and the success of the company that acquires knowledge externally are factors that impact the occurrence of the NIH syndrome. In line with social identity theory, we hypothesize that internal resistance is most likely to occur if knowledge is acquired from similar organizations. This hypothesis is supported by our empirical finding that internal resistance against external knowledge is more likely to occur when knowledge is acquired from competitors rather than from suppliers, customers, or universities. Further, we show that the NIH syndrome is more likely to arise within successful companies that acquire knowledge from competitors. This is in line with our hypothesis that firm success increases the extent to which employees identify themselves with their company, resulting in stronger in‐group favoritism and a superior tendency to reject externally generated knowledge.

Not invented here: how institutionalized socialization practices affect the formation of negative attitudes toward external knowledge

Management literature highlights several potential benefits of institutionalized socialization practices that attempt to increase cohesiveness among employees. This article posits that such practices might also contribute to a biased perception of internally generated knowledge and therefore to a greater reluctance to adopt external knowledge, enhancing the so-called not-invented-here (NIH) syndrome. Drawing on multi-informant survey data, the authors find that institutionalized socialization practices are associated with the NIH syndrome. This association is, however, muted in highly technologically specialized companies.

AVOIDING THE NIH-SYNDROME IN RESEARCH AND DEVELEPMENT: A COGNITIVE DISSONANCE PERSPECTIVE

ABSTRACT The Not Invented Here syndrome (NIH) refers to the rejection of external knowledge, ideas or technologies. Because a consequent rejection of external knowledge can lead to wrong choices when it comes to make-or-buy decisions, NIH is something businesses can not afford to ignore. The objective of this paper is to transfer and apply existing research and instruments from the field of internal marketing to the NIH syndrome. The basis of this carryover will be the theory of cognitive dissonance and how it might explain the occurrence of NIH syndrome. This paper concludes with a discussion of the findings and possible areas of further research. Keywords Not Invented Here (NIH), Knowledge Management, Cognitive Dissonance, Internal Marketing

Mysteries of NIH Syndrome

Abstract: Many studies cite Katz and Allen (1982) as a of Not-Invented-Here (NIH) syndrome. However, their validation is misled by 1) easily adopting a smoothing method on a scatter diagram with no clear trends, and 2) arbitrarily choosing intercept on y-axis. The greatest mystery is that Katz and Allen (1982) used to refer to a decline in project performance caused by length of project members' tenure. In spite of fact that is normally considered to refer to self-sufficiency, Katz and Allen (1982) had used it to refer to decline in performance brought about by length of service of project members. However, real mystery is that many researchers continue to cite this as a study advocating self-sufficiency.Keywords: Not-Invented-Here syndrome, project tenure, communication, RD Allen was one of researchers pivotal to this work (Kuwashima, 2012). Allen and Cohen (1969) and Allen (1977) are known for identifying existence and effectiveness of gatekeeper in research and development organizations. Even recently in Japan, this concept inspires a lot of research, for example, Harada (1999), Kuwashima, Takahashi, and Tamada (2005), Inamizu and Wakabayashi (2009).In late 1970s, Allen and others embarked on a large-scale research project investigating R&D facility in a major company to examine gatekeeper concept in more detail. Results from this study were published in succession from late 1970s to early 1980s: Tushman (1978), Allen, Tushman, and Lee (1979), Tushman (1979), Tushman and Katz (1980), Tushman and Scanlan (1981a) and Katz (1982). Except for Tushman and Scanlan (1981b) and Tushman and Romanelli (1983), most of these publications all came out of this one project.Katz and Allen (1982) is one of final papers published from this research project. The content of Katz and Allen (1982) is almost identical to Katz (1982), which was published same year. These papers show an inverse-U-shaped graph of project performance against mean project of R&D project members. However, Katz (1982) only seldom uses term NIH syndrome as one interpretation of analysis results. Strangely, on other hand, Katz and Allen (1982) highlighted that term, as seen in title, publishing now well-known Figure 4 of the relationship between mean group and project performance analyzed into its components as validation. As a result, this paper became most-cited study on (Lichtenthaler & Ernst, 2006).The found in Katz and Allen (1982) is not self-sufficiency, as often quoted, but in fact, simply in performance caused by long project tenure as mentioned above. This paper makes it clear that Katz and Allen's results were misled by easy adoption of a smoothing method and arbitrary choice of intercept on y-axis.NIH SyndromeThe abstract at beginning of Katz and Allen (1982) defines as the tendency of a project group of stable composition to believe it possesses a monopoly of knowledge of its field, which leads it to reject new ideas from outsiders to likely detriment of its performance.The study investigates all 345 R&D professionals in R&D facility in a major company. Each staffmember is assigned to and stays with one of 61 projects for duration of study. The completed data were taken from 50 project groups, which equates to 82%.(a) The mean (x) of project team members: This is mean period for which project team members interact with each other, rather than period of duration of project. Technical communication data were collected over a period of 15 weeks on a randomly selected day each week. …

Open and closed innovation – different innovation cultures for different strategies

Although strategies, processes, or the role of business models have been addressed in the open innovation literature, the people side of the equation – i.e., the underlying innovation culture – has been neglected so far. Whereas cultural requirements of open innovation have been mentioned, such as the need to overcome the not-invented-here (NIH) syndrome, there exists, to the best of our knowledge, no study that empirically examines open innovation cultures. We attempt to fill this research gap by focusing on innovation cultures within three business units (two follow a closed and one follows an open innovation approach) of a leading multinational company within the specialty chemicals industry. Employing an overall sample of 109 respondents, we focus on the cultural dimensions of NIH syndrome, risk-taking, and management support of innovative behaviour and provide first evidence of cultural differences between Open and Closed Innovation units.