Creativity and Innovation - Large Firms Versus Small Firms

There is a pervasive assumption that small firms are more creative and innovative than larger firms. That is, they identify problems and generate ideas (creativity) and idea select, develop and commercialise (innovate) those ideas to a greater degree than larger firms. However, there is a large degree of untruth to this assumption:

a) Small firms suffer from a different set of problems than larger firms. Small firms, for example, tend to lack resources whereas larger firms tend to have more resources but may be less ready for wholesale adaptation in times of radical change. But these limitations do not mean that one is more innovative than the other. The sheer availability of resources means larger firms should be able to innovate along product, process, positioning and paradigm lines more often.

b) Large firms register more patents than small firms.

c) Relatively little data is available about innovation in small firms.

d) Most research of small firms has been conducted in the technology sector ? a very small sample with it's own idiosyncrasies ? the very large investments that some tech firms get skews the data.

e) There is little data analysing whether the innovations produced by small firms has any significance at all.

f) Small firms will inevitably tend to suffer a lack of intellectual cross-pollination and frame breaking and higher degrees of path dependency and parochialism.

g) There is confusion between organisational size and team size. Small teams working with direct access to decision makers in large organisations can be just, if not more (with larger resources), effective than small firms.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com/

You can also receive a regular, free newsletter by entering your email address at this site.

Kal Bishop, MBA

**********************************

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com/

---

The Red Phone - Management Consulting in 30 Seconds or Less

Modern business faces complex problems; management often calls upon highly-specialized... Read More

A Rare Leadership Skill: Dealing With People Who Want Out By Offering Crowns For Convoy

As a leader, you'll inevitably be faced with people wanting... Read More

Resolving Needs - What Your Employees Wish For!

For your people, they want to do a great job... Read More

Innovation Management: Radical Innovation

Creativity can be defined as problem identification and idea generation... Read More

Commercial Collections Billing Practices Advice

Swiftness is the key to collecting past due commercial accounts... Read More

The Permissive Environment is the Suspect

The permissive and participatory conduct which most employees take for... Read More

Lone Rangers Suffer without Tonto

A lone ranger is someone who prefers working in solitude... Read More

Identifying Potential in Ourselves and Others

If there is someone nearby as you read this look... Read More

How to Delegate Effectively

ACCOUNTABILITY: Delegation is not complete unless subordinates are held accountable... Read More

How to Save Money on Training

1) Use a live instructor. Adults learn best by doing,... Read More

What Makes A Good Media Story?

Media relations can be difficult, but also rewarding. And the... Read More

Setting Direction Within an Organization

FINDING DIRECTION: An organization can't succeed without direction. Direction means... Read More

Business Innovation ? Tacit Knowledge

Creativity can be defined as problem identification and idea generation... Read More

Protect Your Organizations Proprietary Information

The other day one of our overseas clients called in... Read More

Your Organization Is Only as Good as Your People

Let's begin by singing the jingle from an old US... Read More

New UK Laws on Staff Dispute Resolution and Disciplinary Procedures

October 2004 saw the introduction of the Employment Act 2002,... Read More

Five Key Strategies for Making Your Nonprofit Business More Effective

I love tennis both as a spectator and... Read More

Managing Change in the Workplace

Change is exhilarating. Change is terrifying. Change is badly needed... Read More

The Seven Cs: Partnership Danger Signs - Competitive, Not Complementary Action

A series of articles exploring the seven critical areas that... Read More

Bolster Credibility with Investors--Avoid These Phrases in Your Business Plan

Remember Papa John's commercial on TV with the slogan "Better... Read More

Delegate or Die!

You Can't Do It All - Learning To DelegateThere is... Read More

Take Your Firm to the Next Level

So you did such a good job in 2003 at... Read More

ISO 9001 What Records Does My Business Need To Keep?

Which documents must I keep for ISO 9001?In addition to... Read More

Character: Is It Necessary In Leadership? (Part One)

We know character when we see it, but what exactly... Read More

Book Summary: Mind Your Own Business

A maverick is an independent person who will not go... Read More

Great Hires: Avoid Costly Mistakes

Picking people for a job is like going... Read More

Work Environment Tidbits

Color is a big factor effecting all indoor... Read More

Innovation Management ? Flexibility

Creativity can be defined as problem identification and idea generation... Read More

Business Innovation ? Improvisation

Creativity can be defined as problem identification and idea generation... Read More

Toxic Bosses

What's everyone's favorite topic around the water cooler? Bad bosses!... Read More

Middle-Aged Managers, the Forgotten Digital Divide

The digital divide is defined by the role computers play... Read More

You Get the Behavior You Reward

On consulting assignments, here are some of the questions I... Read More

Using Outlook to Count Responses

Here's a productivity tip that will save you a lot... Read More