Managing Innovations: A Study of the Implementation of Electronic Medical Records in Dutch Hospitals

Innovation projects are prone to "escalation of commitment" (the tendency to continue projects even if it is clear that they will be unsuccessful). In this study, we introduce a construct measuring the escalation prevention potential (EPP) of innovation projects as perceived by individuals in the organization. EPP consists of three components: (i) goals, (ii) process, and (iii) ability, to shield projects from escalation to commitment. A survey was conducted among 1062 clinicians working in hospitals implementing Electronic Medical Records. The empirical results show that the three theoretical components of EPP sum up to a single measure. Four organizational characteristics of organizations (organizational routines, authentic leadership, employee involvement and support staff quality) explain a large share of the variation in EPP.