Summary
Summary lectures innovation organisation entrepreneurship
- Course
- Institution
innovation, organisation, entrepreneurship ()
[Show more]
Seller
Follow
SaravanDuijnen
Content preview
Innovation, organization and entrepreneurshipLecture 2 The innovation environment
What explains firm survival rates?
- using an evolutionary lense:
- Darwin was right
- ‘neither strength nor intelligence guarantees survival’
only adaptation can do that.
What separates successful firms?
- ability to innovate
Three levels: macro, interfirm and firm
Different types of innovations:
Improvement vs revenue
improvement/ incremental renewal/ radical
- evolutionary; incremental - revolutionary: ‘jumps’
- ‘leitmotiv’ = we can always improve - leitmotiv = crises - we have to
- focus: management of operations change
- dominant role of planning & control - focus on creativity &
entrepreneurship
Consequences of incremental vs radical innovations
improvement/ incremental renewal/ radical
- source of short-term financial - source of long-term financial costs
revenue - necessary for long-term survival
- no guarantee for long-term survival
,An evolutionary pattern of innovation (abernathy & utterback 1978)
Product life cycle S-curve
opmerking: revenues (Y) en time (X) heeft dezelfde grafiek als grafiek 1 met product
performance
Fluid phase
- innovation emphasis: functional product performance
- stimulated by: technological possibilities
- type of innovation: frequent possibilities
- process: general, flexible but inefficient
- size of organization: small-scale
- organizational control: informal, entrepreneurial
extra information:
strong information on:
- frequent redefinition of tasks
- limited hierarchy
- high lateral communication → organic structure → adaptability (high environmental
uncertainty)
Transitional phase
- innovation emphasis: product variation & optimization
- stimulated by: users & technological possibilities
- type of innovation: large process changes
, - process: more specialized, less flexible but more efficient
- size of organization: medium scale
- organizational control: project teams
Specific phase
- innovation emphasis: process optimization (cost reduction)
- stimulated by: cost pressure & improving quality
- type of innovation: incremental process changes
- process: highly efficient but inflexible
- size of organization: large-scale
- organizational control: formal, rules, structures
extra information:
strong emphasis on:
- stable tasks
- more hierarchy; coordination & control
- top-down communication → mechanistic structure → predictability (low
environmental uncertainty)
Changes from fluid to specific phase
- structure: fluid → specific
- organizational behavior: flexible and responsive → rigid and predictable
- power: entrepreneurs → managers
- orientation: external → internal
Technological discontinuities Tushman and Anderson (1986)
, Competence enhancing:
- large improvements in price/performance
- builds on existing knowledge
- new products or new processes
→ ‘rich get richer’; established players benefit
Competence destroying:
- large improvements in price/performance
- existing knowledge becomes obsolete
- entirely different knowledge & competencies
→ ‘rich get poorer’; new entrants benefit
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SaravanDuijnen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.02. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
47561 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now