Working Paper: NBER ID: w30092
Authors: Joshua S. Gans
Abstract: This paper models the adoption by established firms of technologies that are internally disruptive in that different parts of an organization stand to lose or gain from adoption. When agents disagree with a decision they impose costs on the firm. The paper shows that any resistance to change this yields is necessarily accompanied by others aggrieved should change not occur. Thus, the firm cannot avoid disagreement costs regardless of whether they adopt the technology or not. In some cases, depending on their ability to impose costs, such firms may be more likely to adopt technologies as a result of internal disagreement.
Keywords: No keywords provided
JEL Codes: L21; O32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Internal disagreement (D74) | costs (J30) |
| Internal disagreement (D74) | resistance to change (O30) |
| resistance to change (O30) | aggrieved parties (J52) |
| ability of divisions to impose costs (L11) | likelihood of technology adoption (O33) |
| divisions' power (D30) | technology adoption decision (O33) |
| internal disagreement (D74) | decision-making process regarding technology adoption (O33) |
| degree of internal disagreement (D80) | capacity to impose costs (D24) |