Negative effects of lacking innovation Assignment

Negative effects of lacking innovation - Assignment ExampleAt the individual employee level, innovation is influenced by motivation, cognitive capabilities, disposition and creativity of the individual while at the team level innovation will be determined by the team processes, the leadership style, team social system and team climate (Brown and Ulijn 2004). At the entire organizational level, the size, resources, culture, strategy and structure of the organization determines the talent of the organization to implement innovative solutions to emerging problems (Shavinina 2003).Firms that are non innovative lack the capacity to deal with the nature and intensity of competition within the market thus leading to loss in market overlap and profitability. Innovative firms are capable of monitoring and understanding changes in industry competitive capabilities such as new processes and new technologies thus implementing research and developing activities that will enable the firm to acquire those competencies (Shavinina 2003). In this case, the firms will be using the wrong or inefficient technologies that waste raw materials and lead to postgraduate costs of production. A case example is Sony, the technology giant that lost market share and profitability due to lack of innovative technologies. Sony pioneered the Walkman and Trinitron TV and acquired Columbian pictures thus shocking Hollywood (Tabuchi, p 4). However, the rise of other Japanese rivalries made Sony lose market share and report losses since 2008 since other players manage Samsung Electronics and Apple took advantage of technological revolution and produced digital electronic devices (Tabuchi, p 6). Although Sony had the capabilities to create the iPod before Apple, the management resisted innovation and creativity thus limiting the capability of the company to develop tablets and iPods that would enhance its music business segment (Tabuchi, p 12). It is evident that Sony did