Threat Rigidity Effects in Organizational Behavior: A Multilevel Analysis
What does the threat-rigidity thesis say happens to information processing in organizations under threat?
It narrows — organizations rely on old knowledge and filter out new alternatives.
In 2010, Kodak was in crisis because digital photography replaced film. According to the second article, what type of issue was Kodak facing?
A critical threat.
What is overconfidence bias?
This bias made Kodak’s leaders believe their dominance in film would guarantee success in the digital era, a mistake highlighted in Before You Make That Big Decision.
Give one example of how Kodak showed constriction of control when digital photography became popular.
Leadership centralized decision-making and focused on protecting film revenues, limiting input from digital innovators.
Which two factors, according to the article, decide whether a crisis leads to rigidity or innovation?
Time Pressure and Predictability
What is confirmation bias?
Despite inventing the first digital camera in 1975, Kodak ignored its potential because of this bias, which caused them to cling to their profitable film business
Why is rigidity sometimes helpful in stable environments but harmful in rapidly changing ones?
In stable conditions, sticking with proven responses can work. In changing conditions, like the shift to digital, old responses become maladaptive.
If Kodak’s leaders in 2010 had felt they had more time and could clearly see digital taking over, what would the article predict they would have done?
Shift to an explorative business model.
What is anchoring?
Kodak’s reliance on past film success reflects this bias, where decision-makers fixate on initial reference points instead of adapting to new realities.