Managing Innovation in Architecturally Hierarchical Systems: Three Switchback Mechanisms That Impact Practice

This paper uses a detailed empirical process study to explore the mechanisms that drive complex hierarchically integrated technologies to regress in apparent maturity (“switchback”) over the course of their innovation pathways. Three mechanisms are identified that explain the underlying behavior: switchbacks occur 1) as a natural discovery dynamic, the result of mid-pathway efforts to fill gaps revealed through systems integration; 2) as a strategic framing used by technologists to survive funding shortfalls; or 3) as a revisit of known problems in response to uncertainty in a discrete mission opportunity environment. Although switchbacks are traditionally thought of as deviant events that should be suppressed by managers, this study reveals that many “switchbacks” represent a natural, and necessary, part of the complex technology development process. The implications of these findings are demonstrated by analyzing one dominant funding decision heuristic in terms of the assumptions it embodies and its consistency with the above-described mechanisms. The analysis reveals that efforts to eliminate switchbacks may stifle important innovations without necessarily improving efficiency.