Missed chances and unfulfilled hopes: Why do firms make errors in evaluating technological opportunities?

Abstract Research This study examines commission and omission errors in the evaluation of technological opportunities. Integrating structural cognitive perspectives, we propose that inventors with more cohesive collaboration networks within firm or geographically closer to corporate headquarters exert greater influence on dominant representations shaping opportunity firm. Thus, their inventions are likely be positively assessed, even if quality considerations suggest otherwise. Conversely, when superior quality, from individuals less located far evaluated, leading errors. The provides evidence based 22 interviews archival data mobile phone personal digital assistant industry between 1990 2010. Managerial decision‐making about technologies. Studying patent renewal decisions 42 firms 2010, show close have assessed lower On other hand, away disregarded higher causing These findings call for managerial vigilance technology decisions, ensuring valuable ideas not overlooked due an inventor's network position location.