Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2026 - Free CSCMP Practice Questions and Study Guide

The innovation that larger companies with established structures more commonly pursue is sustaining innovation. Sustaining innovation refers to improvements made to existing products or services that enhance their performance, satisfy existing customers, and reinforce a company's existing market position. These innovations focus on refining and optimizing current offerings rather than creating entirely new markets or radically different products.

Larger companies often have established customer bases and operational frameworks that prioritize stability and consistent revenue generation. As such, sustaining innovation aligns well with their objectives, allowing them to incrementally improve their products and services in ways that meet the needs of existing customers without incurring significant risk. This approach enables them to maintain competitiveness while leveraging their existing capabilities and resources.

In contrast, disruptive innovation tends to target niche markets or underserved customers, often leading to the development of new business models that can undercut established offerings. This type of innovation, while potentially lucrative, involves a higher degree of risk and uncertainty, making it less appealing to large companies that prefer to build on their existing success.

Radical innovation involves creating fundamentally new products or technologies that can disrupt entire industries, often requiring a departure from current practices, which can be daunting for larger entities tied to traditional processes. Transformational innovation encompasses extensive changes that significantly alter or reshape an organization, which is