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Innovative Behaviour - Essay Example

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Large firms can easily innovate as compared to smaller firms. Large firms have more capital to infuse into innovative changes because many smaller firms lack the money to invest in many innovative changes. Further, many smaller firms can easily innovate. Also, there are many factors that constrain large companies to innovate faster than small companies…

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Innovative Behaviour

However, some cost reductions may work against the company. Plus, there are other evidences that small companies can overtake the big companies because of innovation. And, another good example of innovation is the case of Xerox and the small copiers. Plainly, companies should not innovate and reduce production costs blindly. Plus, another clear example of innovation is the RCA radio fallout. Finally, managers must forget the outdated and outmoded management strategies.
Section four entitled Strategic Innovation and Firm Size stated that Large firms can easily innovate as compared to smaller firms. Large firms have more capital to infuse into innovative changes because many smaller firms lack the money to invest in many innovative changes. Likewise, clients prefer to deal with large firms as compared to smaller firms because large firms bring a symbol of stability and financial strength. Large firms also have the much -needed idle cash that it could use to infuse into research and development of new products and processes. Many smaller firms do not have the luxury of having excess money for researching and developing new products and processes. Likewise, large firms often market more diverse products than many smaller companies. Clearly, Large firms can easily innovate as compared to smaller firms.
Further, many smaller firms can easily innovate. ...
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