This paper explores the effectiveness of Google’s organizational design in fostering sustainable innovation. The challenge of achieving and maintaining continuous innovation, crucial for developing new business models and products, is a significant concern for many companies. Historical evidence suggests that organizations often lose their innovative edge over time despite initial successes. Assessing innovation capability involves evaluating a company’s success in product launches and its capacity to learn from failures and persist in its innovation efforts. From a firm-level perspective, the characteristics of an organization, including its structure, culture, and processes, are critical for sustaining innovation in rapidly changing industries. Google exemplifies a company that has consistently demonstrated its ability to innovate. Its matrix organizational structure, which promotes flexibility and cross-divisional collaboration, enhances its capacity for continuous innovation. Google’s organizational culture supports this with practices that encourage creativity and employee satisfaction, such as allowing pets at work and providing on-site childcare. By balancing internal and external collaboration, Google effectively sustains its innovative edge, showcasing the importance of a supportive organizational framework and culture in achieving long-term success.
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