This is the textbook presentation slides made by students from the course Management of Technology taught in fall 2011 at the Department of Business Administration, National Taiwan University. The textbook used is Strategic Management of Technological Innovation 3rd Edition by Melissa A. Schilling, New York University.

1. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Chapter 10
Organizing for Innovation
Presented by Group 9
B97701203 周家毅
B97701205 江承軒
B97701228 金正庭
B97607036 余奕霆
Course Lecturer: Prof. J. T. Chiang
Teaching Assistant: Hsuan-Yi Wu (Jen)
2011/11/2 Fall 2011 BAA Management of Technology 1

2. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Size and Structural Dimension of the Firm
• Size
• Structural Dimension
Formalization
Standardization
centralization

3. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Size and Structural Dimension of the Firm
• The likelihood of innovation
• The effectiveness of innovation projects
• The speed of new product development
processes

4. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Size
Is bigger better?

5. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Joseph Schumpeter
• Large firms have more money for R&D
projects
• Large firms can gather more information
and resources

6. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Advantages of Size
• Scale effect (Economies of scale)
• Learning effect

7. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Advantages of Size
• Grow competencies in the new product
development process
• Better research equipment and personnel
• Better selections of projects fitting the
firms capabilities

8. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Advantages of Size
• More willing to step in risky innovation
projects
– Boeing  747
– Large pharmaceutical companies
• Large firms outperform in industries that have
large development scale
• Collaboration of small firms?

9. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Disadvantages of Size
• Loss of managerial control while growing
bigger
• More difficult for individuals to identify the
returns of their efforts
• Harder to make innovative changes
– Xerox in 1980s

10. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Disadvantages of Size
• Communication & coordination become
more difficult
• Stick to existing large fixed-asset bases
• Icarus paradox

11. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 11

12. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Break Large Firms into Small Parts
• Encourage an entrepreneurial culture
• High-speed technological change
industries

13. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 13

14. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Structural dimensions of the firms
• Formalization : The degree to which the firm
utilizes rules, procedures , and written
documentation to structure the behavior of
individuals or groups within the organizations.
• Standardization: The degree to which activities are
performed in a uniform manner
• Centralization/Decentralization: Centralization is
the degree to which decision-making authority is
pushed down to lower levels of the firm
2011/11/2 Fall 2011 BAA Management of Technology 14

15. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Centralized and Decentralized R&D Activities
2011/11/2 Fall 2011 BAA Management of Technology 15

16. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Mechanistic vs. Organic Structures
Mechanistic : An organization structure characterized by a
high degree of formalization and standardization , causing
operations to be almost automatic or mechanical
Organic : An organization structure characterized by a low
degree of formalization and standardization . Employees may
not have well-defined job responsibilities and operations may
be characterized by a high degree of variation
Size versus Structure
2011/11/2 Fall 2011 BAA Management of Technology 16

17. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
The Ambidextrous Organization :
The Best of Both Worlds?
Ambidextrous organization : The ability of an
organization to behave almost as two different kinds of
companies at once. Different divisions of the firm may
have different structures and control systems , enabling
them to have different cultures and patterns of
operations
2011/11/2 Fall 2011 BAA Management of Technology 17

18. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Modularity 模組化
2011/11/2 Fall 2011 BAA Management of Technology 18

19. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
IKEA
2011/11/2 Fall 2011 BAA Management of Technology 19

20. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Economies of scale
Heterogeneous demand
2011/11/2 Fall 2011 BAA Management of Technology 20

21. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Loosely Coupled Organizational Structures
鬆散連結組織結構
2011/11/2 Fall 2011 BAA Management of Technology 21

22. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
2011/11/2 Fall 2011 BAA Management of Technology 22

23. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Help focus on competitive advantages
Lower overhead and administrative cost
2011/11/2 Fall 2011 BAA Management of Technology 23

24. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Can’t frequently knowledge exchanging
less mechanism for resolving conflicts
2011/11/2 Fall 2011 BAA Management of Technology 24

25. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
跨國企業如何創新？
Center-for-global strategy Local-for-local strategy
Locally leveraged Globally Linked
strategy strategy
2011/11/2 Fall 2011 BAA Management of Technology 25

26. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Q&A
2011/11/2 Fall 2011 BAA Management of Technology 26

27. Department of Business Administration Strategic Management of Technological Innovation
College of Management Melissa A. Schilling, New York University
Discussion Question
• In 2003, Boeing 787 commercial jets were
manufactured from carbon fiber
composites, several partners cooperated
with Boeing with loosely coupled
organized way, and the proportion of
outsourcing of the entire production was
pretty high, the result is not as good as
expected.
2011/11/2 Fall 2011 BAA Management of Technology 27