Management of Technological Innovation 3rd Edition Ch10 Organizing for Innovation

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This is the textbook presentation slides made by students from the course Management of Technology taught in fall 2011 at the Department of Business Administration, National Taiwan University. The textbook used is Strategic Management of Technological Innovation 3rd Edition by Melissa A. Schilling, New York University.

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Management of Technological Innovation 3rd Edition Ch10 Organizing for Innovation

  1. 1. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Chapter 10 Organizing for Innovation Presented by Group 9 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)2011/11/2 Fall 2011 BAA Management of Technology 1
  2. 2. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Size and Structural Dimension of the Firm• Size• Structural Dimension Formalization Standardization centralization
  3. 3. Department of Business Administration Strategic Management of Technological Innovation College of Management 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
  4. 4. Department of Business Administration Strategic Management of Technological InnovationCollege of Management Melissa A. Schilling, New York University Size Is bigger better?
  5. 5. Department of Business Administration Strategic Management of Technological Innovation College of Management 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
  6. 6. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Advantages of Size• Scale effect (Economies of scale)• Learning effect
  7. 7. Department of Business Administration Strategic Management of Technological Innovation College of Management 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
  8. 8. Department of Business Administration Strategic Management of Technological Innovation College of Management 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?
  9. 9. Department of Business Administration Strategic Management of Technological Innovation College of Management 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
  10. 10. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Disadvantages of Size• Communication & coordination become more difficult• Stick to existing large fixed-asset bases• Icarus paradox
  11. 11. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University2011/11/2 Fall 2011 BAA Management of Technology 11
  12. 12. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York UniversityBreak Large Firms into Small Parts• Encourage an entrepreneurial culture• High-speed technological change industries
  13. 13. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University2011/11/2 Fall 2011 BAA Management of Technology 13
  14. 14. Department of Business Administration Strategic Management of Technological Innovation College of Management 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 firm2011/11/2 Fall 2011 BAA Management of Technology 14
  15. 15. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Centralized and Decentralized R&D Activities2011/11/2 Fall 2011 BAA Management of Technology 15
  16. 16. Department of Business Administration Strategic Management of Technological Innovation College of Management 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 Structure2011/11/2 Fall 2011 BAA Management of Technology 16
  17. 17. Department of Business Administration Strategic Management of Technological Innovation College of Management 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 operations2011/11/2 Fall 2011 BAA Management of Technology 17
  18. 18. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Modularity 模組化2011/11/2 Fall 2011 BAA Management of Technology 18
  19. 19. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University IKEA2011/11/2 Fall 2011 BAA Management of Technology 19
  20. 20. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Economies of scale Heterogeneous demand2011/11/2 Fall 2011 BAA Management of Technology 20
  21. 21. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Loosely Coupled Organizational Structures 鬆散連結組織結構2011/11/2 Fall 2011 BAA Management of Technology 21
  22. 22. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University2011/11/2 Fall 2011 BAA Management of Technology 22
  23. 23. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Help focus on competitive advantages Lower overhead and administrative cost2011/11/2 Fall 2011 BAA Management of Technology 23
  24. 24. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York UniversityCan’t frequently knowledge exchangingless mechanism for resolving conflicts2011/11/2 Fall 2011 BAA Management of Technology 24
  25. 25. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University 跨國企業如何創新? Center-for-global strategy Local-for-local strategy Locally leveraged Globally Linked strategy strategy2011/11/2 Fall 2011 BAA Management of Technology 25
  26. 26. Department of Business Administration Strategic Management of Technological Innovation College of Management Melissa A. Schilling, New York University Q&A2011/11/2 Fall 2011 BAA Management of Technology 26
  27. 27. Department of Business Administration Strategic Management of Technological Innovation College of Management 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

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