Emerging markets are decreasingly attractive as organizations get larger

The larger an organization gets, the less attractive emerging markets—where disruptive innovations tend to focus—become.

But while a $40 million company needs to find just $8 million in revenues to grow at 20 percent in the subsequent year, a $4 billion company needs to find $800 million in new sales. No new markets are that large. As a consequence, the larger and more successful an organization becomes, the weaker the argument that emerging markets can remain useful engines for growth.^[1]

Consequently, unless an organization intentionally develops structures and a culture that offset it, organizational growth will cause a trend toward sustaining innovations and rejection of disruptive innovations.

#leadership #management #innovation

See also:

• Sustaining innovations improve performance
• Disruptive innovation is antithetical to good management