Citation
Distributed Attention and Shared Emotions in the Innovation Process: How Nokia Lost the Smartphone Battle
TL;DR
Nokia leadership understood iPhone significance immediately in 2007
Academic analysis of Nokia's decline from 50% smartphone market share in 2007 to below 3% by 2013. Documents how distributed decision-making authority among 15-20 senior executives with veto power created strategic paralysis.
Provides empirical evidence that large census size doesn't protect against drift when effective decision-making authority is concentrated. Random events (which executive had attention, which demo worked) determined direction more than systematic analysis.
Key Findings from Vuori & Huy (2016)
- Nokia leadership understood iPhone significance immediately in 2007
- 15-20 executives with veto power created strategic paralysis
- Random events (attention, demos) dominated systematic analysis