An organization that wants to compete through innovation should:

A) adopt an organic structure and make extensive use of informal communication to coordinate work.
B) centralize and formalize its organizational structure.
C) coordinate employees by writing up formal rules and procedures.
D) switch to a cost leadership strategy as quickly as possible.
E) adopt a mechanistic structure with functional departmentalization.

Adopting an organic structure and making extensive use of informal communication allows for increased flexibility and adaptability, which are essential for innovation. Centralizing and formalizing the structure or writing up formal rules and procedures can stifle creativity and make it difficult for employees to take risks and try new approaches. Adopting a cost leadership strategy or a mechanistic structure with functional departmentalization may be effective for other business goals, but not for competing through innovation.