Management Practice Insights
Year: 2023, Volume: 1, Issue: 1, Pages: 8-11
Malay Krishna 1,*
1 Professor in the Department of Strategy & Innovation, SPJIMR, India
*Correspondance: [email protected]
Received Date:22 September 2022, Accepted Date:21 October 2023, Published Date:09 May 2023
Problem of Practice: While most large companies are making conscious efforts to make their businesses future-ready, truly disruptive ideas face multiple hurdles. Even before a new venture faces the market test, it must attract investment — and decision makers often hesitate to invest precisely because a radical new idea is so unfamiliar. Research1 by Mount and team reveals novel and useful ways to protect a company against this 'unfamiliarity bias.' First, the idea evaluators' background and expertise should be relevant to the ideas under review. Second, the evaluators should engage a lens of 'how' instead of 'why' while making the investment decision. Using a warm-up task is one application of the 'how' approach.
1 Matthew P. Mount, Markus Baer, and Matthew J. Lupoli, “Quantum Leaps or Baby Steps? Expertise Distance, Construal Level, and the Propensity to Invest in Novel Technological Ideas,” Strategic Management Journal 42, no. 8 (2021): 14901515, https://doi.org/10.1002/smj.3267.
2 “Overcoming the Innovation Readiness Gap,” BCG Global, March 22, 2021, https://www.bcg.com/publications/2021/most-innovative-companiesoverview.
3 LOUISE MATSAKIS, “Jony Ive Is Leaving Apple,” WIRED, June 27, 2019, https://www.wired.com/story/jony-ive-leaves-apple/.
4 Austin Carr, “Microsoft CEO Steve Ballmers Legacy: A Salesman Without Product Vision,” Fast Company, August 27, 2013, https://www.fastcompany.com/3016371/microsoft-ceo-steve-ballmerslegacy-a-salesman-without-product-vision.
5 Alex Konrad, “Zoom, Zoom, Zoom! The Exclusive Inside Story Of The New Billionaire Behind Techs Hottest IPO,” Forbes, April 19, 2019, https://www.forbes.com/sites/alexkonrad/2019/04/19/zoom-zoom-zoom-theexclusive-inside-story-of-the-new-billionaire-behind-techs-hottest-ipo/.
6 Joel M. Podolny and Morten T. Hansen, “How Apple Is Organized for Innovation,” Harvard Business Review, November 1, 2020, https://hbr.org/2020/11/how-apple-is-organized-for-innovation.
7 Wendy-Lynn McClean, “Strategy Tool: Amazons PR/FAQ,” Intrico.Io (blog), October 8, 2022, https://medium.com/intrico-io/strategy-tool-amazons-prfaq-72b3e49aa167.
8 Larry Page, “G Is for Google: Read Larry Pages Entire Letter,” CNN Business, August 10, 2015, https://money.cnn.com/2015/08/10/technology/googlealphabet-restructuring/index.html.
© 2023 Published by SPJIMR. This is an open-access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/)
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