Start Date
11-12-2016 12:00 AM
Description
Why do digital markets often result in very fast innovations of questionable quality? We apply a complex adaptive systems (CAS) lens to speed and quality of innovation as an emergent process. Using an agent-based model that allows optimal innovation speeds to emerge from market competition, we show that firms should innovate “fast” (with lower average quality) when the market has a larger number of firms, shorter technological epochs, and lower uncertainty about customer demand; when firms have higher IT capabilities; and when the average speed of firms in the market is faster and outside options are less attractive; otherwise firms should innovate “right” (taking the time to ensure higher quality). We contribute to the study of innovations in IS by providing a holistic view of innovation as a process and considering the complex nature of the emergent optimal innovation speed and quality for firm survival and market evolution.
Recommended Citation
Huang, Ming-Hui; Rand, William; and Rust, Roland, "Don’t Do It Right, Do It Fast?
Speed and Quality of Innovation as an Emergent Process" (2016). ICIS 2016 Proceedings. 4.
https://aisel.aisnet.org/icis2016/GeneralIS/Presentations/4
Don’t Do It Right, Do It Fast? Speed and Quality of Innovation as an Emergent Process
Why do digital markets often result in very fast innovations of questionable quality? We apply a complex adaptive systems (CAS) lens to speed and quality of innovation as an emergent process. Using an agent-based model that allows optimal innovation speeds to emerge from market competition, we show that firms should innovate “fast” (with lower average quality) when the market has a larger number of firms, shorter technological epochs, and lower uncertainty about customer demand; when firms have higher IT capabilities; and when the average speed of firms in the market is faster and outside options are less attractive; otherwise firms should innovate “right” (taking the time to ensure higher quality). We contribute to the study of innovations in IS by providing a holistic view of innovation as a process and considering the complex nature of the emergent optimal innovation speed and quality for firm survival and market evolution.