Being Innovative or Being on the Safe Side – Managing the Risk of Failure

BASIC RESEARCH PROGRAM WORKING PAPERS

Аннотация

Innovation has long been at the center of debates in economics, management, and organizational studies. However, innovation is never free of uncertainty and risk. Every act of innovation implies a departure from established paths and a willingness to embrace the unknown. From the beginning it's never clear if there is an audience which appreciates the innovation. This inherent exposure to uncertainty gives rise to the central dilemma of this collection: whether to be innovative or to play it safe, and how to manage the inevitable risk of failure. The ways in which organizations and societies face this dilemma are profoundly shaped by culture. Cultural values and institutional norms determine how risk is perceived, how uncertainty is tolerated, and how failure is interpreted. Failure, in particular, is at the heart of this discussion. It can be understood as both a barrier and an opportunity.

Beyond cultural meanings and institutional incentives, risk itself emerges as a multifaceted phenomenon. It involves measurable probabilities and uncertainties, as well as narratives of trust, legitimacy, and responsibility. This interplay between ambition and prudence highlights the importance of striking a balance. Innovation cannot advance if all risks are avoided, but reckless exposure to uncertainty can threaten the very foundations of organizational and social stability. This collection seeks to explore these dilemmas by bringing together diverse and complementary perspectives. The volumedemonstrates, how organizational cultures shape behavior in the face of uncertainty, and how societies seek to balance ambition and responsibility. Altogether, the Work underscores the journey from culture to balance: beginning with the cultural foundations of risk-taking, moving through the mechanisms that reward experimentation, addressing the strategic problem of defining acceptable levels of risk, and culminating in the societal task of punishing innovation with safety.