Anton Joseph Generally, larger organizations are more risk adverse, losing their nimbleness in being able to address change and innovation quickly. Larger corporations have the mandate to provide return on investment for its stakeholders and mitigate risk. Most smaller companies have the ability to pivot and change direction to remain innovative. However, it is harder for smaller businesses and entrepreneurs to bring products to the market because limited resources available compared to their larger counterparts.
In the article, “How Large And Small Businesses Can Overcome The Innovation Paradox Together”, by Mike Maddock, the author outlines several examples of larger companies who were surprised by smaller start ups such as Napster, Uber and Airbnb. With that said, larger companies have more resources than their smaller rivals to act on an opportunity. Maddox’s article also discusses how some larger companies are now committing to setting aside capital and resources to spur innovation. (Maddox. 2016)
This has been confirmed in my experiences with companies I’ve worked for or created. While working at a large, publicly funded sport training centre, I saw the struggle and bureaucracy that presented itself anytime an innovative idea was to be evaluated and potentially implemented. Once adopted however, the innovative idea received an abundance of resources to bring it to reality. As an entrepreneur, I have been able to make decisions relatively quickly when it comes to innovation however sometimes lack the resources to make the charges happen.
It has been my experience that while there are significant challenges to the development of innovation within bigger organizations, the main root problem is organizational culture. The leadership in larger organizations must be willing to be open to innovation and foster it in their work environment. When an organization is unwilling to change, it can be their undoing. An example of this is Kodak and their hesitation on adopting digital photography. (Maddox. 2016)
The struggle for smaller, more agile companies is to have the resources available to act on their innovation. Entrepreneurs are are good at developing ideas, and action however, they often lack the systems, discipline, rigor and the time to take their ideas to market. (Maddox. 2016)
References
Maddock, Mike. (2016). How Large And Small Businesses Can Overcome The Innovation Paradox Together. Forbes.com. Retrieved from: https://www.forbes.com/sites/mikemaddock/2016/03/31/the-innovation-paradox-entering-the-next-chapter/?sh=411dfd65c92e
