When a large and established firm gets into a new line of business, either on its own or by acquiring a smaller and newer innovative firm, what kind of structure does the new innovative unit require compared to that of the established parent?
A)More mechanistic
B)More organic
C)More matrix
D)More virtual
E)More modular

Question

Quizplus · Accepted Answer

The new innovative unit typically requires a more organic structure to foster flexibility, adaptability, and responsiveness to the fast-changing environment typical of new ventures or innovative operations. This contrasts with the more mechanistic structure often found in established firms, which focuses on efficiency, standardization, and predictability.

When a Large and Established Firm Gets into a New