This paper shows why members of an organization often share similar beliefs. I argue that there are two mechanisms. First, when performance depends on making correct decisions, people prefer to work with others who share their beliefs and assumptions, since such others 'will do the right thing'....

The literature on new goods and social welfare generally assumes that innovations are developed by manufacturers. But innovation by users has been found to also be an important part of innovative activity in the economy. In this paper we explore the impact of users as a source of innovation on...

This paper studies, in a world with differing priors, the role of organizational beliefs and managerial vision in the behavior and performance of corporations. The paper defines vision operationally as a very strong belief by the manager about the right course of action for the firm. The...

In the traditional new product development process, manufacturers first explore user needs and then develop responsive products. Developing an accurate understanding of user needs is not simple or fast or cheap however, and the traditional approach is coming under increasing strain as user needs...

In a study of innovations developed by mountain bikers, we find that user-innovators almost always utilize "local" information - information already in their possession or generated by themselves - to assess the need for and to develop solutions for their innovations. We argue that this finding...

This paper studies the effects of open disagreement on motivation and coordination. It shows how - in the presence of differing priors - motivation and coordination impose conflicting demands on the allocation of authority, leading to a trade-off between the two. The paper first derives a new...

Innovation development, production, distribution and consumption networks can be built up horizontally €Ӡwith actors consisting only of innovation users (more precisely, "user/self-manufacturers"). "Free" and "open source" software projects are examples of such networks, and examples can...