Are there particular types of innovation activities for which large firms are likely to outperform small...
Are there particular types of innovation activities for which large firms are likely to outperform small firms?
Homework Answers
The following categories of innovation activities are more likely to be effective in larger firms than smaller ones.
(i) The activities which have higher stakes. Since bigger companies can take greater risk and absorb it in event of failure, smaller firms can not. Therefore, the activities which involves greater expenditure and have high degree of uncertainty of success, better suit larger corporations with deep pockets and risk taking abilities.
(ii) Innovative activities that need too many resources and expertise. Again, large organisations have more resorces of every nature and have more experience and expertise ( in many cases), facilitating innovatve actions.
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