The biasing effect of networks in the implementation of innovations

We develop a theoretical framework about how the social network of a project leader can introduce bias in project-related decision making in the form of overvaluation. Overvaluation can increase both the likelihood of implementing projects which turn out to be successes or projects which fall below what is expected and thus turn out to be failures. We provide a deeper understanding of the contingencies under which the biasing effects of networks through overvaluation turn out to be more or less beneficial for organization. More specifically, we theorize that overvaluation is more beneficial in organizations which have a low decision threshold for projects while it can be more detrimental in organizations which have a high decision threshold.