TIM Lecture 9

Question 1

creative destruction

Answer 1

Creative entrepreneurs implement innovations because they expect monopoly profits from doing so. “Side-effect”

Phases: strong growth, imitation and deceleration of growth, depression

Question 2

Forms of resistance against innovation

Answer 2

Rational-technological arguments
– Doubts about operability: “Does it work?”
– Objections against the timing of the innovation:
“Now is not a good time!”
– Objections because of missing/limited fit:
“It does not fit to our processes / products!”

Rational-economic arguments
– Objections against destruction of valuable assets/competences:
“Existing capital goods will become obsolete!”
– Objections against risk: “The risk is too high!”
– Doubt about the necessity of the innovation (reversed burden of proof):
“Who on earth needs this? Necessity must be proved!”

Ecological arguments

Question 3

Causes of resistance: Why does it happen?

Answer 3

• Barriers of “not-knowing” / due to lack of knowledge

- Barriers of “not-wanting“ / due to lack of willingness

Question 4

Does administration hinder or foster innovation?

Answer 4

Administration for routine tasks can filter out innovation (Responsibility, “Rejection” by way of passing the innovation up in the hierarchy
, Filtering effect when innovation criticizes the existing organization)

Question 5

Resistance from Accounting?

Answer 5

Accounting does not treat innovations as intangible investments/assets, but as expenses.
However, recent changes in IAS: Of “R and D”, “D” can (and must) be amortized (“aktiviert”), “R” must not

Question 6

Three types of promoters

Answer 6

• Technical: has idea for new product, process, or technology
• Process: recognizes the value the idea has for the company. Also involves power promotor and other key individuals (Process promotor is usually introduced when technical and power ones have large distances)
• Power: allocates resources to innovation project

Question 7

Network

Answer 7

A network is a collection of nodes linked by a type of relationship - trust, problem solving, decision making, information flow

Question 8

Key network positions: the broker

Answer 8

Connects clusters of disconnected others
Benefits from this network position:
– Control advantages
regarding the flow of information
– Information advantages

Question 9

Key network positions: technological gatekeeper

Answer 9

• Connects clusters of disconnected others
• Individual strongly connected internally and externally
• Two-step process
  1. Gatherandunderstandexternalinformation
  2. Translate this information into something meaningful and useful to others in the organization
• Keen to distribute information to others in the organization

Question 10

The Gatekeeper Characteristics

Answer 10

– high technical / professional competence
– many publications and presentations
– high formal level of education
– employed already for a long time
– lower leadership level in hierarchy