Organizing for radical and incremental innovation - Nohria and Gulati (1996) Is slack good of bad for innovation

7 important questions on Organizing for radical and incremental innovation - Nohria and Gulati (1996) Is slack good of bad for innovation

What does the article of Nohria and Gulati (1996)?

About the inverse U-shaped relationship between slack and innovation

What are the excess inputs of slack resources?

Redundant employees, unused capacity, and unnecessary capital expenditures.

What can a firm use slack resources for? (to respond 3)

- uneven performance
- contigencies as budget cuts or environmental jolts
- engage in slack search, or experimentation
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For what kind of innovation is slack resource possible?

For both. Incremental and radical innovation. In practice, slack should be linked with small, incremental innovations that break organisation interia often randomly

What do economist say about slack?

Slack is a wasted resource due to agency costs

ADDDDD THE PICTURE OF THE PPT, what is the optimal slack?

Too little slack --> discourages experimentations
Too much slack --> encourages complacency (no discipline)

What determines the optimal slack level?

- industry (growing or declining)
- firm or subunit culture

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