The IKEA Effect

The IKEA effect, a fascinating psychological phenomenon first identified and named by researchers Michael I. Norton (Harvard Business School), Daniel Mochon (Yale), and Dan Ariely (Duke), has evolved far beyond its origins in furniture assembly. In their groundbreaking 2012 paper “The IKEA effect: When labor leads to love,” published in the Journal of Consumer Psychology, these researchers demonstrated through various experiments—ranging from assembling cardboard boxes to creating origami and building Lego models—that people assign significantly higher value to products they’ve helped create themselves.

The researchers defined the IKEA effect as an “increase in valuation of self-made products.” Notably, participants valued their own creations as highly as expert-made items, even when the quality was objectively lower. This insight into human psychology has profound implications for how organizations engage their employees and users.

Learning that there is a name for this phenomenon is insightful, but it also confirms what many of us intuitively know from experience: we are naturally more committed to our own ideas compared to those imposed on us by others.

Yet, we see this scenario play out repeatedly. Employees are handed pre-determined goals, assigned tasks, and provided designs to implement, rather than being given the opportunity to choose goals or solve problems themselves.

Sometimes managers or leaders use urgency as an excuse, saying, “I didn’t have time to wait for that person to solve the problem themselves” or “I had to provide answers because I couldn’t wait for the team to decide.” However, this imposed decision-making process removes ownership from the individuals responsible for delivering results. When it’s not their decision, they are less invested in the outcome, and if it fails, they’re less likely to feel accountable. This lack of ownership can ultimately undermine both morale and project success.

To succeed as a leader, you must invest time in your people and give them the opportunity to solve problems on their own, even if it means allowing them to fail occasionally. Practicing patience involves resisting the urge to provide immediate answers. Instead, focus on asking the right questions to guide them toward finding the best solutions themselves, cultivating independence and deeper learning.

We all place greater value on initiatives we help create. This isn’t because we are flawed, biased, or self-centered; it’s because we inherently understand and appreciate things we invest time in more deeply. The more we understand something, the more likely we are to like and even love it.

As a leader involving employees/team members meaningful ways—from planning and decision-making—is essential to boosting engagement, cultivating loyalty, and driving greater commitment to success. If you don’t embrace this approach, you risk being seen as merely a manager, lacking the true qualities of a leader who inspires and empowers others.