In Search for the Not-Invented-Here Syndrome: The Role of Knowledge Sources and Firm Success

Katrin Hussinger and Annelies Wastyn ()
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Annelies Wastyn: IDEA Consult, Brussels, Belgium

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: The not-invented-here (NIH) syndrome refers to a negative attitude of employees against externally developed knowledge. We show that the sources of external knowledge and the success of the company that acquires knowledge externally are factors that impact the occurrence of an NIH syndrome. In line with social identity theory, we hypothesize that internal resistance is most likely to occur if knowledge is acquired from similar organizations. This hypothesis is supported by our empirical finding that internal resistance against external knowledge is more likely to occur when knowledge is acquired from competitors rather than from suppliers, customers or universities. Further, we show that the NIH syndrome is more likely to arise within successful companies that acquire knowledge from competitors. This is in line with our hypothesis that firm success increases the extent to which employees identify themselves with their company resulting in stronger in-group favoritism and a superior tendency to reject externally generated knowledge.

Keywords: not-invented-here syndrome; external knowledge sources; firm success; social identity theory; organizational identity (search for similar items in EconPapers)
JEL-codes: O31 O32 O33 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Working Paper: In search for the not-invented-here syndrome: The role of knowledge sources and firm success (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:16-24

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