Logics’ Shift and Depletion of Innovation: A Multi-Level Study of Agile Use in a Multinational Telco Company

The use of Agile practices is typically associated to a wide array of benefits for organizations. This paper extends growing research on the ‘dark’ side of Agile by investigating the depletion of innovation in a large telco company following the large-scale implementation of Agile in R&D units. Our qualitative study reveals a shift in the organizational logics underpinning new product development, from a “navigating through unchartered waters” to a “putting out fires” logic. We tracked the change in key components of logics (goals of teams, source of legitimacy of team members and support and control systems) and explained the multi-level mechanisms through which the shift occurred, i.e., changes in processes of workflow management, work allocation, and performance management. We found that the new organizational logic negatively impacted individual attitudes towards the generation of new ideas by promoting the internalization of short-termism, a perceived drain in competences and confidence, and the lack of accountability for innovation. By focusing on changes in organizational logics, our insights expand current knowledge about the relationship between Agile implementation and individual attitudes. We also explain why unexpected effects of Agile implementation may go undetected in organizations, because they derive from multi-level, diffused, changes in the organization.