Today�s environments are rapidly changing, to the extent of being hypercompetitive and discontinuous. There is a relative ease of entry and exit by rival firms in most fields. Consumer demands are ambiguous, and the ability of managers to foresee the nature of change is getting limited. When environments are hypercompetitive, there is a need of greater flexibility. The need to have stable and long-term, yet flexible and responsive, process capabilities is greater than ever before. To achieve that responsiveness, it is needed that the firm may create innovative solutions for problems, increase its adaptive capabilities, and create newer organizational forms. In hypercompetition, environmental changes can not be managed but only responded to. Newer organizational forms designed for flexibility and knowledge creation are crucial to organizational survival in hypercompetitive environment.