Chapter 10-1

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Discussion Questions

November 20, 2012

POSTECH Strategic Management of Information and Technology Laboratory

(POSMIT: http://posmit.postech.ac.kr)

Dept. of Industrial & Management Engineering

POSTECH

Discussion Questions

■ 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)

2

Discussion Questions

■ 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).

3

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