Question

Edwin Lee leads a cross-functional product development team at Lightspeed.com, a software company with employees in 10 countries around the world. The members of Edwin's team are hard-working and highly creative, but he wonders if there are ways to stimulate more innovation from the team. As the company has grown, so too has the bureaucracy. Numerous rules and policies have been introduced, and decision making has become highly centralized. This has resulted in resource limitations and tight project deadlines. Fortunately, with the use of web cams and other Internet technology, Edwin is able to hold frequent meetings with his global cross-functional teams. And despite some structural limitations, the company's culture does seem to foster creative solutions. Diverse opinions are encouraged, and even the most unrealistic, ""off-the-wall"" solutions are accepted without criticism. Mistakes are treated as learning opportunities—a good thing, since there have definitely been some mistakes!

Which structural variable that can foster innovation is present already at Lightspeed?
A) organic structures
B) abundant resources
C) low external controls
D) high interunit communication

Answer 1

Lightspeed.com supports innovation through high interunit communication, allowing team members to share opinions and ideas freely across a global platform.

Step-by-step explanation:

The structural variable that fosters innovation already present at Lightspeed.com is high interunit communication. The frequent meetings held via web cams and other Internet technologies, despite the presence of centralization and bureaucracy, enables cross-functional and global teams to collaborate, share diverse opinions, and foster a culture where even unrealistic solutions are accepted without criticism. This high level of communication is crucial in multinational companies for nurturing innovation and creative problem-solving, even when facing structural limitations like resource constraints and centralized decision-making processes.