Internal resistance and external knowledge (sources): A theoretical framework on the not-invented-here syndrome

Abstract

This paper develops a theoretical framework linking internal resistance to external knowledge (sources). The literature often refers to internal resistance against externally developed knowledge as the Not Invented Here Syndrome. In line with the Social Identity Theory we argue that external knowledge might increase a comparison of the in-group's expertise with that of the out-group and as such threaten the identity of the group and its members. In addition we argue that the source of external knowledge matters. Knowledge acquired from similar organizations is more likely to lead to internal resistance than knowledge from dissimilar organizations. We argue that competitors are most similar to the focal organization and that therefore the NIH syndrome occurs when knowledge is acquired from competitors but not if this knowledge is acquired from suppliers, customers or universities.