Internal competition evokes mixed feelings among senior executives. This is generally regarded as wasteful, bad for morale, and indicates a lack of strategic direction, but at the same time it can also be very useful - way to create flexibility in technological uncertainty and challenge the status quo. This article is based on a five-year study of ten companies to provide advice to managers on how to realize the benefits of an internal competition. He describes the two different forms of domestic competition (competition between technology and competition among businesses) and related management strategies for each. It also defines the criteria for deciding whether to allow coexistence of competing units or their activities should be consolidated. "Hide
by Julian Birkinshaw Source: California Management Review 19 pages. Publication Date: 01 Oct 2001. Prod. #: CMR213-PDF-ENG
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