Cindy Caldwell

Précis of: Haradon, A., & Douglas, Y. (2001). When innovations meet institutions: Edison and the design

of the electric light. Administrative Science Quarterly, 46(3), 476-501.

Introduction

This paper explores the role of design in balancing the innovative and the established when a

new idea is introduced to society. An historical account of Thomas Edison’s electric lighting system is

used to illustrate how “robust design” can take advantage of and displace established institutions.

The value and significance of a new enterprise is shaped by both institutional and economic

influences. Public understanding and promotion is critical for acceptance. The typical focus when

promoting a new idea uses functional and economic advantage which neglects the social embeddedness

of acceptance by the public. Social embeddedness is displayed through schemas and scripts that

establish acceptable understanding and action which in turn helps us interpret new situations. Schemas

provide a basis for broad assumptions. Scripts allow specific action. Entrepreneurs must demonstrate

novelty using existing language to make new ideas familiar otherwise they will not be valued.

Edison planned his enterprise around the familiar gas system using a design that purposely

mirrored the existing objects and social structures of gas utilities. Ten years after Edison unveiled the

incandescent bulb and system of power generation in the office of JP Morgan his system had displaced a

powerful gas infrastructure that had existed for nearly 50 years.

Obstacles to Institutional Acceptance

Edison prevailed in spite of many obstacles that he faced:

The British and United States scientific communities were highly skeptical of Edison’s vision.

The gas industry was well established. Gas companies were integrated into the social, economic

and political infrastructure.

The dangers of electric lighting outweighed the benefits.

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The cost of the system was tremendous with the use of copper conductors and limited range.

Buildings needed to be renovated to accommodate wiring and the gas companies retaliated by

consolidating and driving prices down.

Use of Robust Design

Edison could have easily promoted his new idea by pointing out that gas produced soot and had

low illumination and electric was clean and bright, but instead responded by building a “robust design”.

Robust designs have familiar themes embedded in them to gain acceptance with the public. Initial

feelings of familiarity must be flexible enough to allow for new understandings to emerge about the

innovation. Robust design acknowledges the interdependence of technical and social functions. When a

new technology emerges a social process is initiated that embeds it within a shared set of

understandings and actions. Too much novelty in design may create misunderstandings and lack of

acceptance. Too much familiarity creates resistance. Skeumorphs highlight a principle of robust design.

Skeumorphs are elements of design that are no longer functional but were necessary in the original

product and are essential to public understanding of and familiarity with the new innovation. Examples

include wood veneer on televisions and radios and the reintroduced Volkswagen bug that retained the

same shape but was entirely redesigned internally.

Following the premise of robust design, Edison presented incandescence as cheap and practical

and built the first commercial power plant to facilitate acceptance. He modeled the gas industry’s

familiar centrally located generating facilities even though it was not the cheapest or most practical. It

was also located strategically to gain political support. Edison purposely used dim 12 watt bulbs that

were familiar to users because the light’s brightness was the same as gas. In addition, he buried the lines

underground versus overhead sacrificing high power losses.

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The gas institution consisted of coal manufacturers, lamplighters, suppliers, customers,

politicians and investors. Change was resisted through the harsh negative resistant of incumbents that

resulted in legislation promoting the status quo. To reduce institutional opposition Edison brought

influential gas financiers in as investors in the electric system. The financiers then tried to control the

design of the new system without success, but destabilized Edison’s future control of the enterprise.

Other examples demonstrate the utility of robust design and the consequences if the evolution

and impact are not accepted by the institution:

Edison’s phonograph was relatively unique and although it had many potential uses it

was advertised primarily as an electric stenographer. By understating the importance of

reproducing music on the phonograph, Edison unintentionally narrowed the public’s ability to

relate to the product by challenging pre-established schemas and scripts and the phonograph

was initially rejected by consumers.

Prodigy was one of the first consumer on- line service providers. The company’s

schemas and scripts were built around advertising and online information sharing in contrast to

growing public fascination with and demand for e-mail service and message boards. Prodigy's

business model depended on advertising and online shopping revenue. Prodigy designed their

email services primarily to aid shopping not for general communication between users. Prodigy

was slow to change its schemas and scripts to gain public support for their product. Public

dissatisfaction increased when they levied E-mail and message board surcharges and they lost a

significant share of the market.

The TiVo digital video recorder could program, record and replay programs but had

remarkable potential to expand beyond the understanding of the VCR. Using the system of

robust design, TiVo needed to decide which features to present as new, which to present as

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familiar and which to conceal from public scrutiny. TiVo was originally introduced as an

advanced generation VCR with the same look and feel of a VCR, but also needed to be seen as

novel in order to break through the strong understanding and acceptance of the VCR institution.

This was done by promoting the sophisticated recording technology that not only records

requests, but also material that the consumer may likely be interested in viewing based on

viewing habits. The ability to automatically skip over television commercials was a major

concern to the media industry and was initially downplayed as a feature.

Conclusion

Thomas Edison developed a system of electric lighting that altered the established institution.

His use of design provided a way to mediate between innovation and institutions. Specifically, Edison

employed the concept of robust design which makes a product effective in the immediate future and

adaptive to changing conditions. Edison purposely downplayed his invention of an electrical system and

used a familiar gas design to gain acceptance. This study demonstrates that historical cases can highlight

how innovation emerges from and shapes the institution. Similar use of robust design is evident in the

evolution of organizational theories that introduce a new model by integrating familiar premises.

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