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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In Sociology and Political Science

  1. Clay Dibrell
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  3. Gautam Ahuja
  4. Alexander Brem

In Strategy and Management

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  2. Vivek Tandon
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  6. E. Hansen
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