Financial structure and organizational culture constrain disruptive innovation

Not only do the existing customers/users tend to constrain an organization to merely incremental innovation, the organization’s financial structure and organizational culture have powerful limiting effects on disruptive innovation.

… it is not just the customers of an established firm that hold it captive to their needs. Established firms are also captive to the financial structure and organizational culture inherent in the value network in which they compete—a captivity that can block any rationale for timely investment in the next wave of disruptive technology.^[1]

#innovation #organizations

See also:

• Disruptive innovation is antithetical to good management
• Systems image their design groups