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The biasing effect of networks in the implementation of innovations
Author(s) -
Szatmari Balazs,
Deichmann Dirk
Publication year - 2023
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1111/emre.12537
Subject(s) - biasing , business , computer science , engineering , electrical engineering , voltage
We develop a theoretical framework about how the social network of a project leader can introduce bias in project‐related decision making in the form of overvaluation. Overvaluation can increase both the likelihood of implementing projects that turn out to be successes or projects that fall below what is expected and thus turn out to be failures. We provide a deeper understanding of the contingencies under which the biasing effects of networks through overvaluation turn out to be more or less beneficial for organizations. More specifically, we theorize that overvaluation is more beneficial in organizations that have a low decision threshold for projects, whereas it can be more detrimental in organizations that have a high decision threshold.