Management of Technological Innovation 3rd Edition Ch10 Organizing for Innovation
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Transcript of Management of Technological Innovation 3rd Edition Ch10 Organizing for Innovation
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Organizing for Innovation
Presented by Group 9
2011/11/2 1 Fall 2011 BAA Management of Technology
Chapter 10
B97701203 周家毅
B97701205 江承軒
B97701228 金正庭
B97607036 余奕霆
Course Lecturer: Prof. J. T. Chiang
Teaching Assistant: Hsuan-Yi Wu (Jen)
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Size and Structural Dimension of the Firm
• Size
• Structural Dimension
Formalization
Standardization
centralization
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Size and Structural Dimension of the Firm
• The likelihood of innovation
• The effectiveness of innovation projects
• The speed of new product development
processes
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Size
Is bigger better?
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Joseph Schumpeter
• Large firms have more money for R&D
projects
• Large firms can gather more information
and resources
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Advantages of Size
• Scale effect (Economies of scale)
• Learning effect
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Advantages of Size
• Grow competencies in the new product
development process
• Better research equipment and personnel
• Better selections of projects fitting the
firms capabilities
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Advantages of Size
• More willing to step in risky innovation projects – Boeing 747
– Large pharmaceutical companies
• Large firms outperform in industries that have large development scale
• Collaboration of small firms?
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Disadvantages of Size
• Loss of managerial control while growing bigger
• More difficult for individuals to identify the returns of their efforts
• Harder to make innovative changes
– Xerox in 1980s
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Disadvantages of Size
• Communication & coordination become
more difficult
• Stick to existing large fixed-asset bases
• Icarus paradox
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 11
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Break Large Firms into Small Parts
• Encourage an entrepreneurial culture
• High-speed technological change
industries
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 13
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Structural dimensions of the firms
• Formalization : The degree to which the firm utilizes rules, procedures , and written documentation to structure the behavior of individuals or groups within the organizations.
• Standardization: The degree to which activities are performed in a uniform manner
• Centralization/Decentralization: Centralization is the degree to which decision-making authority is pushed down to lower levels of the firm
2011/11/2 Fall 2011 BAA Management of Technology 14
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Centralized and Decentralized R&D Activities
2011/11/2 Fall 2011 BAA Management of Technology 15
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Mechanistic vs. Organic Structures
Mechanistic : An organization structure characterized by a
high degree of formalization and standardization , causing
operations to be almost automatic or mechanical
Organic : An organization structure characterized by a low
degree of formalization and standardization . Employees may
not have well-defined job responsibilities and operations may
be characterized by a high degree of variation
Size versus Structure
2011/11/2 Fall 2011 BAA Management of Technology 16
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
The Ambidextrous Organization :
The Best of Both Worlds?
Ambidextrous organization : The ability of an
organization to behave almost as two different kinds of
companies at once. Different divisions of the firm may
have different structures and control systems , enabling
them to have different cultures and patterns of
operations
2011/11/2 Fall 2011 BAA Management of Technology 17
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Modularity 模組化
2011/11/2 Fall 2011 BAA Management of Technology 18
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 19
IKEA
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 20
Economies of scale Heterogeneous demand
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 21
Loosely Coupled Organizational Structures
鬆散連結組織結構
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 22
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 23
Help focus on competitive advantages Lower overhead and administrative cost
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 24
Can’t frequently knowledge exchanging
less mechanism for resolving conflicts
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 25
跨國企業如何創新?
Center-for-global strategy
Globally Linked strategy
Locally leveraged strategy
Local-for-local strategy
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 26
Q & A
Department of Business Administration College of Management
Strategic Management of Technological Innovation
Melissa A. Schilling, New York University
Discussion Question
• In 2003, Boeing 787 commercial jets were
manufactured from carbon fiber
composites, several partners cooperated
with Boeing with loosely coupled
organized way, and the proportion of
outsourcing of the entire production was
pretty high, the result is not as good as
expected.
2011/11/2 Fall 2011 BAA Management of Technology 27