Organizational DNA for Strategic Innovation
By V. Govindarajan, C. Trimble. 2005
156 citations recorded by the source corpus.
Organizations struggle when trying to manage an existing business and a related new strategic experiment simultaneously.The new venture must forget much of what has helped the corporation become successful but must borrow its resources at the same time.Case studies of ten companies conducted by the authors, and additional case studies by others, were the basis of this research. To overcome the challenges posed by strategic innovation, organizations must adopt a dual-purpose design. In dual-purpose organizations, the core business and the new venture are distinct subunits within the corporation and have very different DNA.To create its own organizational DNA, the new business must forget the core firm's business definition and competences, as well as the predictability associated with its proven business.The new firm must also hire outsiders at the operational and management level, create its own business functions and processes, develop its own performance measures, and establish its own unique culture of experimentation and learning. Once the new firm has overcome the difficulties that accompany borrowing, it can borrow, among other things, the core enterprise's physical assets (such as manufacturing capacity), brands, expertise, and process outputs.Illustrations of each borrowing strategy are offered.In order to become a distinct organization capable of exploiting links to the core firm, the new strategic venture must be carefully supervised by an executive sponsor. (SAA)
Subfields: Safety, Risk, Reliability and Quality, Sociology and Political Science, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/c7a1ff377cd90844a2780415fd6db608b002a791
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Citations in the corpus
- Natural Environment, Market Orientation, and Firm Innovativeness: An Organizational Life Cycle Perspective (2011, background): “Firms that are earlier in the organizational life cycle and have an eye toward growth, such as in the adolescence phase, have often been associated with increasing levels of innovation (Govindarajan and Trimble 2005; St. John, Pouder, and Cannon 2003).”
- 1 Moving Beyond Schumpeter: Management Research on the Determinants of Technological Innovation (2008, background): “In spin-outs (Agarwal, Echambadi, Franco & Sarkar, 2004; Govindarajan & Trimble, 2005; Klepper, 2007), a part of the organization is separated to run a business in its entirety outside the organization (and not just the product development part).”
- How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era (2022, background): “Several studies have highlighted the importance of new initiatives to be integrated with the rest of the organization (Govindarajan and Trimble, 2005).”
- Research and development from the bottom up - introduction of terminologies for new product development in emerging markets (2014, background): “The tendency of the growing importance of emerging markets and the awareness concerning innovation for economic success are reflected in the dramatic increase of articles in the press about innovation in combination with emerging markets (e.g., Reena 2009; Saraf 2009; Govindarajan and Trimble 2005; ”