Handling innovations which do not fit

The concepts incremental, modular, architectural and radical innovations introduced by Henderson and Clark (1990) highlights the interdependence between innovation and organizations. Competition forces the established competing firms to create efficient organizations for producing and developing products. Organizations will organize around the product's main components, since they are the key subtask of the design and production problem [H. Mintzberg, 1997]. Architectural and radical innovations representing new and different products are difficult to handle for established organizations because there is a misfit between the new innovation and the established organization. The organization thus works as a strong conserving force for innovations that require changes in product design. And, as a consequence the innovative capability is not nourished.