November 20, 2012
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT: http://posmit.postech.ac.kr)

■ Chapter 10. Organizing for Innovation
1.
Are there particular types of innovation activities for which large firms are likely to outperform small firms? Are there types for which small firms are likely to outperform large firms?
– Innovation which large firms can perform better:
Innovation projects that are especially large or risky (resource issue)
– Innovation which small firms can perform better:
Innovations that require breaking with the norms of the industry (cultural issues)
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■ Chapter 10. Organizing for Innovation
2.
What are some of the advantages and disadvantages of having formalized procedures for improving the effectiveness or efficiency of innovation?
– Advantages of having formalized procedures
• Providing employees with clear expectations of behavior and criteria for decision-making
• Substituting for managerial oversight
• Generally making the process more efficient
– Disadvantages of having formalized procedures
• Possibility the firm may become less nimble or responsive to change  less effective
• Possibility to develop bureaucratic inertia
(i.e. difficulty processing the information needed to effectively react to change).
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