The linkage between firm size and product innovation has frequently been discussed by both researchers and other writers. John Ettlie and Albert Rubenstein report the results of a study which, by distinguishing between the incorporation of radical and incremental technology, attempts to resolve some of the controversy surrounding this issue. In particular, the authors hypothesize that up to a certain point, large firms with greater resources are more likely to commercialize radically new products successfully. Findings generally support this theory but refinements to the model are now possible. For example, firms with 1000 employees or less need not be excluded from radical product introduction if they resolve critical funding and research problems. This size‐radicalness distribution is shaped like a fish hook or a claw. That is, up to about 1000 employees, there is no significant relationship between number of employees and radicalness of a new product. Between 1200 and 11,000 employees there is a significant, direct relationship. Finally, very large organizations (in excess of about 45,000 employees) are unlikely to introduce radically new products. Larger firms were significantly more likely to adopt ambitious new processing technologies in order to introduce these new products. Also, new product success was significantly predicted by the absence of funding problems in introducing the innovation and the degree to which the new product was a radical departure from existing practice.
Trust and organizational development in research and development laboratories were studied, using a multiple time-series, natural quasi-experimental research design. Nine focal groups from three organizations, each with five to 10 members, participated in the project. Most individuals completed two batteries of questionnaires several months apart. Two hypotheses were supported. First, the more an individual trusts his workgroup and the more he generally trusts others with whom he interacts during his work, the greater will be his self-actualization. Second, a "proper" organizational development program will increase an individual's feelings of trust toward his own group and toward others, while maintaining awareness of the demands of his tasks. A third hypothesis received mixed support: the more the members of a group trust that group, and the more they generally trust others with whom they interact during their work, the more effective the group will be in its goal accomplishment. From this mixed support, it appears likely that the organizations in this study had conflicts between the norms of self-reliance and obedience.
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