Session 27 - Session 27 Final- May 4th 2-4 1115 Pearson...

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Session 27 Final- May 4 th 2-4 1115 Pearson Innovation in Small and New Firms Reasons that tend to constrain the ability of large established companies to innovate? (especially radical innovations) Cognitive based factors o Stability orientation and risk avoidance o Success trap: “don’t change winning team” Motivational based factors o Established status quo reduces search incentives o Success trap: “success makes less hungry” Resource based factors o Resources and invested tied to existing products and technologies o Success trap: “vested interest in status quo” Any potential advantages of larger orgs? (esp radical innovations) Sufficient resources for very large projects o Financial resources o Human resources o External support Sufficient resources for very risky projects o Slack resources o Diversify risk across multiple projects
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This note was uploaded on 09/05/2011 for the course MGMT 310 taught by Professor Staff during the Fall '08 term at Iowa State.

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Session 27 - Session 27 Final- May 4th 2-4 1115 Pearson...

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