Generational Innovation the Reconfiguration of Existing Systems And the Fail

Cover Generational Innovation the Reconfiguration of Existing Systems And the Fail
Generational Innovation the Reconfiguration of Existing Systems And the Fail
Rebecca Henderson
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28 (ipspitp thp fpicp that thp idpntity of the pstablishprl firm changps in pvpry i nst aiipp, ^ Thus traditional pcononic pxpl anat jons of t h*^ fai hue of establisheri firms do not sppp' to hold hpre. Fvplanat ions that )ely on "bureaucratic inertia, " or on the difficulties that many organizations encountpr in attemptine to rpspond any t^ype of change are similarlv susppct . Sincp pstablishpd f i rm« pxpliritly idpntified thp competitive threat represented by generational innovation, attach
...ed great importance to meeting it, and used design teams that weie on average ("omposed of fewer than twenty five people ("Henderson, l'^88>. Established firms failed to maintain their position into the npxt gpupration hpcause the experience that they had gained with incremental innovation in the previous gejieratjon - specifically the relational knowledge that they had accumulated - made it very difficult for them to understand the nature of the generational innovations with which they were faced or to shape an appropriate response.

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