Business Innovation Between Globalization and Social Differentiation

Abstract

In this paper, we argue that a trade off between homogenization and differentiation in social and cultural systems can be linked to systemic theories of evolutionary change. We briefly introduce the necessary perspectives from biological evolution, sociology and social psychology, innovation and globalization with respect to management issues. Subsequently, we discuss the implications for management and derive suggestions for strategic management of international businesses in the area of cultural systems and innovation. We argue that managers need to consider the trade-off between homogenization aiming at the realization of economies of scale and scope and differentiation and varied needs for integration by different sets of customers. As a result, we sketch a framework of thought that increases their ability to steer their companies through global social change.

Keywords: globalization, homogenization, differentiation, trade-off, systemic evolution, innovation, management, leadership, ethics, organizational change