The European Business Review

WHAT IF YOUR BUSINESS MODEL WAS TO BLAME FOR YOUR LACK OF INNOVATIVENESS?

As Peter Drucker said1 , “Culture eats strategy for breakfast,” a clever way of acknowledging that something larger than strategic alignment could impede a firm in accomplishing its objectives. When it comes to innovation, a similar reality seems to explain why firms cannot develop a capability for innovation. A strong force exists within organisations that is often referred to as organisational inertia2 , an installed opposition that makes it difficult to ignite an innovation-focused culture.

Being unable to innovate jeopardises a firm’s future. According to a recent McKinsey survey , 90 per cent of executives believe they are forced not only to generate product innovation but to actually question and bring considerable change to how they generate profits. In other words, they must

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