Muhl_Discussion 2.docx - Explain the differences between...

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Explain the differences between radical and incremental improvement. What are the risks associated with not being creative and innovative? How would you create a culture of creative thinking within a manufacturing environment? In 2014, Marit Engen and Inger Elisabeth Holen conducted a study of Radical vs. Incremental Innovation within service firms. Within this study, they reference Tushman and Romanelli’s definition of radical innovation as a “process of reorientation wherein patterns of consistency are fundamentally reordered” (Engren & Holen, 2014, p.16). Conversely, incremental innovation was defined as a “change that implies small adaptations to the status quo, and it is often described as a step-by-step process” (Engren & Holen, 2014, p.16). Having defined the differences, we look to a study conducted by Ana Fernandes and Caroline Paunov on Chilean manufacturing plants. Over a 10-year period, the two studied the survivability of the manufacturing plants as they began to experiment with innovation. During
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Unformatted text preview: this time, Fernandes and Paunov determined that single-product innovators were at greater risk of exiting the market (Fernandes & Paunov, 2012, p.1). This is can be attributed to the radical innovation philosophy. Whereas, innovators with incremental improvements increased their odds of survivability significantly (Fernandes & Paunov, 2012, p.1). Overall, it was concluded that while radical innovation was game of high-risk high reward, those payoffs did not exceed those with cautious innovation (Fernandes & Paunov, 2012, p.1). References: Engen, M., & Holen, I. E. (2014). Radical Versus Incremental Innovation: The Importance of Key Competences in Service Firms. Technology Innovation Management Review , 4 (4), 15–25. doi: 10.22215/timreview781 Fernandes, A. M., & Paunov, C. (2012). The Risks of Innovation: Are Innovating Firms Less Likely to Die? Policy Research Working Papers . doi: 10.1596/1813-9450-6103...
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