Clay Christensen: “Disruptive Innovations Create Jobs, Efficiency Destroys Them”

Rapidly growing startups have things that must get done, almost regardless the cost. Effectiveness reigns over efficiency. Often they are providing something new in the marketplace. Once competition really sets in, cost starts to matter more, and efficiency reigns over effectiveness. The rash early hiring settles down.

If you read Innovator's Dilemma, I suggest reading "Blue Ocean Strategy" as well. The overall concept is very similar, but with some different insights, and while Clayton focuses mainly on technology companies, this books also gives examples for different types of products from different industries.

http://www.amazon.com/Blue-Ocean-Strategy-Uncontested-ebook/...