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

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  • Hussinger, Katrin
  • Wastyn, Annelies
Abstract
The not-invented-here (NIH) syndrome refers to internal resistance in a company against externally developed knowledge. In this paper, we argue that the occurrence of the NIH syndrome depends on the source of external knowledge and the success of the firm that aims at adapting external knowledge. 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 finding that the NIH syndrome occurs when knowledge is acquired from competitors but not if knowledge is acquired from suppliers, customers or universities. Further, we show that successful companies are most likely to experience the NIH syndrome (if knowledge is acquired 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.

Suggested Citation

  • Hussinger, Katrin & Wastyn, Annelies, 2011. "In search for the not-invented-here syndrome: The role of knowledge sources and firm success," ZEW Discussion Papers 11-048, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:11048
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    Cited by:

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    2. Ke Feng & Bas Karreman & Deming Zeng & Enrico Pennings, 2024. "R&D collaboration, social coordination, and standardization: evidence from the Chinese automotive industry," The Journal of Technology Transfer, Springer, vol. 49(1), pages 158-190, February.
    3. Antoine Thuillier & Matthew Fuller & Albert David, 2017. "Moving to higher ground: building innovation capabilities to overcome conceptual biases in new product development," Post-Print hal-01629693, HAL.
    4. Chiara Franco & Alberto Marzucchi & Sandro Montresor, 2012. "Absorptive capacity, innovation cooperation and human-capital. Evidence from 3 European countries," JRC Research Reports JRC77090, Joint Research Centre.
    5. Ma, Danni & Fee, Anthony & Grabowski, Simone & Scerri, Moira, 2022. "Dual Organizational Identification in Multinational Enterprises and Interpersonal Horizontal Knowledge Sharing: A Conceptual Model," Journal of International Management, Elsevier, vol. 28(1).
    6. Rachel Bocquet & Sandra Dubouloz, 2020. "Firm Openness and Managerial Innovation: Rebalancing Deliberate Actions and Institutional Pressures," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 43-74.
    7. Alberto Marzucchi & Chiara Franco & Sandro Montresor, 2011. "The potential face of absorptive capacity. An empirical investigation for an area of 3 European countries," Working Papers 2011R08, Orkestra - Basque Institute of Competitiveness.
    8. Hannen, Julian & Antons, David & Piller, Frank & Salge, Torsten Oliver & Coltman, Tim & Devinney, Timothy M., 2019. "Containing the Not-Invented-Here Syndrome in external knowledge absorption and open innovation: The role of indirect countermeasures," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    9. Purdy, Lauren & Eslami, Hadi & Eshghi, Kamran & Rod, Michel, 2023. "Technology sourcing and the dark side of open innovation: Evidence from the biopharmaceutical sector," Technovation, Elsevier, vol. 119(C).
    10. Kathleen Diener & Dirk Luettgens & Frank Thomas Piller, 2019. "Intermediation For Open Innovation: Comparing Direct Versus Delegated Search Strategies Of Innovation Intermediaries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-20, June.
    11. Björn Remneland Wikhamn & Alexander Styhre, 2017. "Open Innovation As A Facilitator For Corporate Exploration," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(06), pages 1-20, August.
    12. Frishammar, Johan & Richtnér, Anders & Brattström, Anna & Magnusson, Mats & Björk, Jennie, 2019. "Opportunities and challenges in the new innovation landscape: Implications for innovation auditing and innovation management," European Management Journal, Elsevier, vol. 37(2), pages 151-164.
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    More about this item

    Keywords

    Not-invented-here syndrome; external knowledge sources; firm success; social identity theory; organizational identity;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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