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ructure, culture, human resource practices. How do structural variables affect innovation? On the basis of extensive research, we can make three statements regarding the effect of structural variables on innovation. First, anic structures positively influence innovation because they have less work specialization and fewer rules and are more decentralized than mechanistic structures. They facilitate the flexibility, adaptation, and crossfertilization that make the adoption of innovation easier. Second, easy availability of plentifull resources is a key building block for innovation. An abundance of resources allows management to purchase innovations, bear the cost of instituting innovation, and absorb failures. Finally, frequent interunit munication helps break down possible barriers to innovations, by facilitating interaction across departmental lines. 3M, for instance, is highly decentralized and takes on many of characterstics of small, anic anization. The pany also has the deep pockets needed to support its policy of allowing scientists and engineers to use up to 15 percent of their time on projects of their own choosing. How does an anization’s culture affect innovation? Innovative anizations tend to have similar cultures. They encourage experimentation. They reward both successes and failures. They celebrate mistakes. An innovative culture is likely to have the following seven characteristics: 1. Acceptance of ambiguity Too much emphasis on objectivity and specificity constrains creativity. 2. Tolerance of the impractical Individuals who offer impractical, even foolish, answers to whatif questions are not stifled. What seems impractical at first might lead to innovative solutions. 3. Low