Wake up call to big business as tech-savvy newbies set the pace

The best tech start-ups are lean, agile and unafraid of taking risks in pursuit of new markets. By contrast, more traditional or longer-established businesses can struggle to do anything more than protect the status quo — an attitude that is limiting at best and could potentially leave them vulnerable to competitors who can respond faster to changing customer demands, according to Costas Andriopoulos, a professor of innovation and entrepreneurship at Cass Business School.

One of the main factors is that the bigger and more successful companies get, the less flexible they become. “Size leads to structural inertia, with layers and layers of management, and cultural intertia, which is the ‘this is how things are done here’ attitude,” Professor Andriopoulos said. “This can mean that the business will get set in its ways. It will try to protect the status quo instead of innovating.”

Read more in The Times