Large pharmaceutical organizations can furrow a huge

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large pharmaceutical organizations can furrow a huge number of dollars into drug development with the expectation that maybe a couple drugs are fruitful. This recommends in industries that have large development scale (i.e. the average development project is very enormous and expensive large firms will tend to outperform little firms at innovation." . Little firms tend to have fundamentally shorter development cycles, and be more responsive to new technological generations. Consumer products tend to use more decentralized research and development, while electronics products tend to centralize research and development. Huge firms can have internal structures with motivations and behaviors of little firms, making the effect of firm size on innovation moot.Big firms tend to have internal structures with incentives and behaviors of small firms, hereby creating impact on the firm size. Standardization can regulate worker’s behavior by offering clear desires and expectation for behavior and decision making criteria. It can replace for some degree of oversight, decreasing needs for managers. This can enhance coherence of development exercises. High degrees will result the firm in becoming more rigid, and smother worker creativity. Standardization as well as formalization ease coordination costs, to the detriment of making the firm more mechanistic.
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