Balancing cognition and emotion: Innovation implementation as a function of cognitive appraisal and emotional reactions toward innovation

Focusing on the role of emotions in understanding employee behavior, the present study identifies employees' emotional reactions toward innovation as a mediating process that explains the effects of institutional environment on collective innovation use in work units. We further employed the appraisal theory of emotion and affective events theory (AET) to conceptualize the relationships between cognitions and emotions involving innovation. This expanded conceptual model was tested using multi‐source data from 1150 employees and managers of 81 branches of a Korean insurance company that were implementing a new practice called Life‐Long Learning. Two contextual factors (management involvement and training for innovation) significantly predicted employees' collective cognitive appraisal of the innovation (perceived usefulness and perceived ease of use). Collective cognitive appraisal in turn predicted employees' positive and negative emotions toward the innovation, which completely mediated the effects of contextual factors and cognitive appraisal on implementation effectiveness (consistent and committed use of the innovation in the branch). This study highlights the critical role of emotions in the context of innovation implementation, and shows the need for greater attention to emotional processes in examining organizational innovations. Copyright © 2010 John Wiley & Sons, Ltd.