Section9

Question 1

What distinguishes invention from innovation?

Answer 1

• Invention: creation of a new idea or product
• Innovation: successful commercial application of an invention

Question 2

How do Henderson & Clark (1990) define architectural innovation?

and when do firm fail?

Answer 2

• It changes linkages between components without altering the core
• Firms fail if they do not adapt their organisational structure to new product architectures

Question 3

What is the mirroring hypothesis?

Answer 3

• Technical structures mirror organisational structures
• Conway’s Law (1968): software structure reflects the organisation that builds it
• Causality can go either way

Question 4

What is modularity in product design?

Answer 4

• Decomposable system into standardised components
• One-to-one mapping of components and functions
• Facilitates coordination without hierarchy

Question 5

Why pursue a modular strategy? (3)

Answer 5

• Efficiency and division of labour
• Flexibility (parallel search, upgradeability)
• Market-based coordination through standard interfaces

Question 6

What are the downsides of modularity?

Answer 6

• Costly architecture (requires thorough system understanding)
• Trade-off: performance vs. variety
• Hold-up problems and supplier power
• Learning trade-off (breadth vs. speed of search)

Question 7

How do radical and incremental innovations differ?
(C&L)

Answer 7

• Incremental: core concepts and linkages are reinforced
• Radical: core concepts and linkages are changed
• 3^rd wave, 4^th wave references to industrial revolutions