Successful firms often struggle with innovation because they become complacent with their existing strategies and are hesitant to take risks.

Question

BlackTom AI · Accepted Answer

Consider the statement about successful firms and innovation from multiple angles.
Option 1: True. Many enterprises that enjoy early success develop strong attachments to their current strategies, processes, and business models. This can lead to complacency, where the organization underestimates external threats or new technologies, and hesitates to take the necessary risks to explore disruptive ideas. Such risk-averse castes of thinking often hinder experimentation, slow portfolio renewal, and reduce adaptive responsiveness in dynamic markets.
Option 2: False. If a firm is truly thriving, it might still pursue innovation by balancing core operations with exploration. However, the claim specifically asserts that success breeds complacency and risk aversion that impede innovation. While some successful companies maintain a culture that rewards experimentation, the general risk described is well-documented in organizational behavior literature, where steady success can dull initiative and create inertia, making falsehood less likely across diverse contexts.
Option 3: This statement would imply that all successful firms are immune to innovation challenges, which is historically inconsistent. There are examples of highly successful firms that fail to innovate or that innovate only after a crisis, demonstrating that the relationship is not absolute but probabilistic.
Option 4: The claim may overgeneralize by blending complacency with hesitancy to take risks; some firms counteract complacency with structured innovation programs, incentives, or external partnerships. Thus the statement is not universally true in every case, yet captures a common barrier observed in many organizations experiencing sustained success.

MIS 446, Section 001: It Bus Strat (22511--UP---P-MIS-----446-------001-) MIS446Q2

Successful firms often struggle with innovation because they become complacent with their existing strategies and are hesitant to take risks.

View Explanation

Log in for full answers

Similar Questions

Question at position 1 The Skunkworks approach removes a team from everyday organizational constraints to enhance creativity.TrueFalse

Which of the following is not the reason that companies need innovation?

In managing new product ideas, which of the following allows for a holistic and systematic process?

Incentives and processes used to keep companies focused on their main customers can be a major cause for missing a new technologies or emerging markets.

The success of technological innovation mainly depends on the characteristics of the innovation in question.

The success of technological innovation mainly depends on the characteristics of the innovation in question.

According to Dodgson et al, innovation management is:

The innovation life cycle view of innovation processes specifically considers the distinction between innovation and invention.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler