Innovative Firm

Question 1

What does the concept innovative firm relate to?

Answer 1

A firms ability to enhance and create a innovative environment where employees are motivated are inspired and want to deliver innovative products

Question 2

What structural dimensions depend on a firms ability to be innovative?

Answer 2

Formalization
Standardization
Centralization
Decentralization

Question 3

What are the pros and cons of working in a large firm for the firm to be innovative?

Answer 3

Advantages
• Has larger capability to finance R&D in this way innovation
• Has a better position in a better position to take on large or risky innovation projects.
• Large firms tend to outperform smaller companies at innovation.
• Being a larger firm has the advantage of that the size may arise in scale and learning effects.
o Might reap in economies of scale and learning curve advantage.

Disadvantages
• May be less innovative because of their size can make them nimble and responsive to change.
• Have more bureaucratic inertia and many layers of authority.
• More difficult to manage and effectively monitor and motivate employees.
• R&D efficiency might decrease due to loss of managerial control
• As number of employees grow, communication and coordination might become more difficult and prone to decision-making delays.

Question 4

What are the pros and cons of working in a small firm for the firm to be innovative?

Answer 4

Advantages
• More flexible and entrepreneurial
• Don’t have many multiple layers of administration or large fixed assets
• More simple to monitor and motivate employees, have a reward system
• Resources are less abundant
• Shorter development cycles
• More motivated to choose projects more carefully leading to higher rates of new product sucess

Disadvantages
• The large firms might outperform the small firms
• Might not be as productive as large companies

Question 5

What is Icraus Paradox?

Answer 5

A firms prior success in the market that can hinder its ability to respond to new technological innovations.

Question 6

What is an ambidextrous organization?

Answer 6

The ability of an organization to behave almost
as two different kinds of companies at once. Different divi- sions of the firm may have differ- ent structures and control systems, enabling them to have different cultures and patterns of operations.

Question 7

What are the different types of ways to try to either renew the established operations or create something new

Answer 7

Separating, Dividing or combining (together)

Question 8

Absorptive capacity

Answer 8

Ability of an organization to recognize, assimilate and utilize new knowledge.

Question 9

What where the innovative principles that Apple ?

Answer 9

1. Never being contentand looking for threats
2. Daring to do bold experiments
3. Disliking bad products
4. Build from strengths (but also dare to question them)
5. Internal and external competence search
6. Avoiding compromise
7. External search to commit innovative supplier

Question 10

How did Google organize for Innovation?

Answer 10

• The creative side of the company was organized into small technology teams with considerable decision-making authority. The structure and culture was designed to foster informal communication and collaboration.
• All technical personnel were required to spend 20% of their time on innovative projects of their own choosing.
• Other mechanisms are:–Recognition and Founder awards, AdsenseIdeas Contest and Innovation reviews

Question 11

What are high performance management practises to produce innovation, productivity?

Answer 11

1. Employment security
2. Selective hiring
3. Self-managed teams and decentralization
4. Extensive training
5. Reduction of status differences
6. Sharing of information
7. High and contingent compensation