Who Killed Nokia? Nokia Did | INSEAD Knowledge

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1 Comment

  1. Tomi Engdahl says:

    Science paper how Nokia failed:

    Distributed Attention and Shared Emotions in the Innovation Process: How Nokia Lost the Smartphone Battle
    http://knowledge.insead.edu/sites/www.insead.edu/files/images/asq_2015_print_vuori_huy_distributed_attention_and_shared_emotions_in_innovation_process.pdf

    We conducted a qualitative study of Nokia to understand its rapid downfall over
    the 2005–2010 period from its position as a world-dominant and innovative
    technology organization. We found that top and middle managers’ shared emo-
    tions during the smartphone innovation process caused cycles of behaviors that
    harmed both the process and its outcome. Together, organizational attention
    structures and historical factors generated various types of shared fear among
    top and middle managers. Top managers were afraid of external competitors
    and shareholders, while middle managers were mainly afraid of internal groups,
    including superiors and peers. Top managers’ externally focused fear led them
    to exert pressure on middle managers without fully revealing the severity of the
    external threats and to interpret middle managers’ communications in biased
    ways. Middle managers’ internally focused fear reduced their tendency to share
    negative information with top managers, leading top managers to develop an
    overly optimistic perception of their organization’s technological capabilities and
    neglect long-term investments in developing innovation.

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