When the economic landscape contains a healthy mix of organizational sizes, large companies exist alongside smaller—and often more adaptive—competitors. This can help expose them to better practices sooner. The earlier exposure can in turn give the large concerns more ramp-up time to select and implement new techniques before having to slug it out with giant rivals.

The earlier challenge posed by smaller competitors can thus serve as a kind of early warning system, enhancing the larger enterprises’ chances for survival over the long run.