Wednesday, February 8, 2012

Evolutionary view of organizational change and Innovation

In the last blog we learnt about the classification of theories on organizational change. In today's blog we attempt to understand the relation between evolutionary view of organizational change and the associated innovation. 

When one thinks of organization's established structures, procedures, norms etc, we realize that generally these would have developed as learning from organization's response to the challenges it faced. Every time a new challenge is posed to the organization, these very systems that have been set up to handle some similar but past situations turn to be inertial force. Thus these organizations are slowed down in responding relatively to the threats and opportunities that the environment poses.

When faced by environmental change, new entrants within the industry would potentially displace the established organizations that do not react quickly enough. It has also been observed that new entrant companies play a "competence-destroying" technological innovation, while the existing companies thrive at "competence-enhancing" technological change adaptation. It would be interesting to also relate these to the discussion we had on the J-Form and adhocracy models and the innovation. We leave that as a thought exercise for the readers here.

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