Excerpt from Term Paper:

...... This theory is quite interesting in analyzing the potential relationship between innovation and imitation within an organization rather between different organizations. Indeed, it would be interesting to note that the independence of the modules is likely to encourage innovation because the respective modules become almost solitary functional units within the same system. This type of environment will encourage the unit to function on its own and to seek the maximization of its own activity within the organization itself. This also means that the it will tend to innovate as a mean to maximize its performance
Why innovate rather than imitate? Most likely because of a potential low interdependence and interconnection with the other modules that form the organization, the unit will be deterred from imitation and directed toward innovation as a way forward within the organization. This is probably something that can be translated to every individual forming those modules......

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