The Effect of Anarchistic Actions in Digital Product Innovation Networks: The Case of “Over the Air” Software Updates

Abstract

In this paper we explore mirroring challenges when an incumbent firm endeavor digital innovation. More specifically, we describe how AutoInc, organized according to the physical vehicle it produces, is challenged when an “over the air” software service is developed and implemented. Using the mirroring hypothesis as a point of departure to understand existing and emerging innovation networks, we recognize anarchistic actions. The analysis reveals the emergence of anarchic actions and how they challenge well-established federative innovation networks within the organization. With continued focus on technology, the project and organization disregarded necessary social structure development, which resulted in reduced capabilities to utilize the digitalized service. This qualitative paper also illustrates how the mirroring hypothesis, although originating from product innovation literature, can be used to understand digitalization dynamics. To the end, the analysis shows that the digital product innovation classification structure may need additional tuning.