There is some understanding that the way businesses understand the world is incorrect. Some businesses will have an out-sized impact on the marketplace. Companies that congregate in areas of similar industry tended to demonstrate more growth. This could be networking. While this pertains to larger companies, it does not mean that smaller companies can’t develop their own networks. In places where a few large companies dominate the industry are poised for failure if the company moves or collapses. One approach to creating these networks is to authorize cooperatives like in South Korea.
Key Takeaways:
- Having a multitude of comparably-sized companies in the same area is good for both the individual companies and the local economy.
- Short-term thinking can lead companies to make bad decisions or to forget to consider important information.
- South Korea used Italy and Canada as models for diversifying its economy and reducing the dominance of a handful of big conglomerates.
“The point Christensen was making is that by having a dynamic view of mankind, what we may deem as small potatoes can change the big picture.”
Read more: Why How we Measure Impact is, Mostly, Wrong
