What organisational forms are best suited to develop innovation Use Essay

What organisational forms are best suited to develop innovation Use relevant theoretical approaches and illustrative exemples in your answers - Essay Example Organisational forms are dependent on the resources and technology available in a given situation. Other factors include the state’s resources and role, the development of the economy, the political development, technological advancement, and similar other forces. Emergence of organisational forms also depends on three factors: 1.) technological advancement with a corresponding social structural support; 2.) power and wealth available in a given situation; and 3.) the development of labour markets. (Aldrich, 2008, p. 177) This essay will discuss aspects and factors of organisational forms that are best suited to innovations. Innovation takes place when there is a â€Å"new element or a combination of old elements† (Schumpeter, 1934 cited in Sundbo, 2003, p. 98). Globalisation paved the way for new organisational forms. This was further enhanced with the popularity of the internet, information technology and the information revolution. Many organisations have followed the horizontal set-up, freeing some reins of power to their branches and subsidiaries, while some have followed the traditional form or the vertical set up, micro-managing their branches through technology. Organisations have to continuously introduce innovations in this age of intense globalisation. Changes and innovations have to be applied on marketing strategies, product orientation, HRM practices, and many other organisational strategies. Employees have to be prepared, trained and developed. Some strategies are institutionally programmed although change has to be spontaneous. Workers have to study and learn and hold the opportunity of lifelong learning. Companies attain competitive edge through constant innovation. The first periods of the new century marked profound shifts in organisation’s strategies with aims for talents, technologies and customer focus and loyalty (Venkatraman and Henderson, 2008, p. 258). Organisations keep constant contact with