By Raghu Garud, Praveen Rattan Nayyar, Zur Baruch Shapira, James G. March
The means for expertise companies to develop and alter with the days is associated with how those companies boost and industry technological thoughts. regardless of the significance of technological alterations for company energy, there are documented circumstances of companies failing to capitalize on technological possibilities. Innovation end result is contingent upon a fit among a firm's inner functions and its exterior context. Technological Innovation addresses particular ways that the slender odds of company good fortune will be more desirable. It analyzes why businesses pick out convinced new applied sciences, from a technological, fiscal, and institutional standpoint. in response to multidisciplinary examine on technological selection, the publication bridges study and perform to supply an enlightening and useful study
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Additional info for Technological innovation : oversights and foresights
New technologies, if successful, provide some of the most important sources of wealth. However, if not successful, new technologies can drain firms of their valuable resources. In this way, new technologies can act as both a source and a sink. To explore this duality, this chapter attempts to link risk taking by decision makers to the context of technological development. First, we explored Type I and Type II decision errors and pointed out the trade-offs that exist between them. Next, we argued that decision makers can reduce the sum of the two errors.
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Decision makers involved with technology choices are aware of the two potential errors and their implications for risk-taking. On the one hand there is a tendency for decision makers to behave in a risk-averse manner. Pursuing this avenue is manifested by attempts to continue building on alternatives that proved successful in the past without exploring new avenues through innovation. However, firms operating in dynamic environments soon discover that avoiding the challenge of dealing with innovations may prove dangerous.