Abandoned Projects: Organizational Knowledge and Learning in New Product Development

This research develops intraorganizational theory about how knowledge resources assembled for product development initiatives influence which projects are abandoned before they are completed. Organizational learning theory offers important causal mechanisms of organization change and adaptation. Early organizational learning theory introduced the idea that when problems occur, search is initiated and if satisfactory solutions are not found, current activities can be abandoned. This type of abandonment is labeled problem-related abandonment. Evidence for problemistic search is strong, but the theory does not explain why organizations continue to make changes when performance is at or above aspiration levels. This dissertation research advances theory that sources of knowledge embedded in organizational teams decrease the likelihood of problem-related abandonments. It also develops new theory that explains why the same sources of knowledge increase the likelihood of a different type of abandonment---opportunity-related abandonment. Data on the first new product development projects a sample of start-up video game developers initiate are used to test the theory developed in this dissertation research. The findings support proposed theory that a team's knowledge of who knows what decreases the likelihood of problem-related abandonment, consistent with its benefits to problem solving. They also support proposed theory that the same knowledge increases the likelihood of opportunity-related abandonment, consistent with its impact on creativity and knowledge generation.