Why we Support some Original Ideas but Reject Others: An Application of Signaling Theory

ABSTRACT Although organizations say new ideas are desirable, investing in original products rather than the “tried and true” can be unsettling for decision‐makers. This discomfort may be due, in part, to uncertainty surrounding whether a new idea will prove successful. As such, the originality of a creative idea can be paradoxically viewed both as an asset, driving up appeal, as well as a detrimental risk. To help unpack these relationships, we propose that how an original idea is proposed (i.e., pitched) plays a central role in the support it receives. Guided by signaling theory we examined how pitch quality relates to funding for ideas with varying degrees of originality. In a field sample of 245 Kickstarter crowdfunding campaigns, pitch quality for ideas high in originality predicted investment in such ideas. In a follow‐up experimental study, we created high‐ and low‐quality pitches for two products, also varying product originality and product quality. Results highlight the importance of high‐quality pitches for highly original ideas that are associated with reductions in uncertainty. Supplemental analyses suggest that high‐quality pitches improve enthusiasm for a product as well, highlighting a potential second path of support influence.