Innovation strategies: beyond new product development

Fig_1_21    The first way to develop an innovation strategy is to (re)define where the firm wants to compete, what it defines as being part of its (new) “core business”. Specifically, this means finding new ways to explore – not just exploit – and reconfigure its business portfolio.

Fig_1_22The second way to develop an innovation strategy is to redefine how the firm wants its businesses to compete and which product/market positioning and value chain it wants them to build and sustain.

c DIO123+A key element of an innovation strategy is to understand that first is not always best. A firm should assess and define how quickly it wants to enter new business areas and manage innovation accordingly.

Fig_1_24One high-risk/high-potential innovation strategy is to challenge generic strategies and define and implement a “strategic innovation,” a radical redefinition of where and how a firm wants to compete and shape its future.


Innovative corporate strategies: (re)define the core business

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  • (Article) Zook, C. (2007). Finding your next core business. Harvard Business Review, 85(4), 66-75.

Innovative business strategies: redefine how to compete

  • (Book) Porter, Michael E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York.: Simon and Schuster..
  • (Book) Skarzynski, P. & Gibson, R. (2008) Innovation to the core, Harvard Business Press
  • (Video) Stanford Course – Innovating Through Value Chains
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  • (Article) Zott, C., & Amit, R. (2008). The fit between product market strategy and business model: implications for firm performance. Strategic Management Journal, 29(1), 1-26.

Timing: first is not always best

  • (Book) Markides, C. C., & Geroski, P. A. (2004). Fast second: How smart companies bypass radical innovation to enter and dominate new markets (Vol. 325). John Wiley & Sons.
  • (Book) Schilling M.A. (2006) Strategic Management of Technological Innovation (2d ed.) McGraw-Hill, Irwin
  • (Video) The Zinnovants “First is not always best
  • (Article) Afuah, A. (2013). Are network effects really all about size? The role of structure and conduct. Strategic Management Journal, 34(3), 257-273.
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  • (Article) Enkel, E., & Mezger, F. (2013). Imitation processes and their application for business model innovation: An explorative study. International Journal of Innovation Management, 17(01), 1340005.
  • (Article) Henderson, R. (2006). The innovator’s dilemma as a problem of organizational competence. Journal of Product Innovation Management, 23(1), 5-11.
  • (Article) Hill, C. W., & Rothaermel, F. T. (2003). The performance of incumbent firms in the face of radical technological innovation. Academy of Management Review, 28(2), 257-274.
  • (Article) Lieberman M.B., & Montgomery D. B. (1988). First-Mover Advantages. Strategic Management Journal, Vol. 9, Special Issue: Strategy Content Research. (Summer, 1988), 41-58.
  • (Article) Madsen, T., & Leiblein, M. (2015). What Factors Affect the Persistence of an Innovation Advantage? Journal of Management Studies, 52, 1098-1127.
  • (Article) Markides, C., & Sosa, L. (2013). Pioneering and first mover advantages: the importance of business models. Long Range Planning, 46(4), 325-334.
  • (Article) Marx, M., Gans, J. S., & Hsu, D. H. (2014). Dynamic commercialization strategies for disruptive technologies: Evidence from the speech recognition industry. Management Science, 60(12), 3103-3123.
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  • (Article) Vidal, E., & Mitchell, W. (2013). When do first entrants become first survivors?. Long Range Planning, 46(4-5), 335-347.

Off the beaten paths: strategic innovations

  • (Book) Chan Kim, W. & Mauborgne, R. (2005) Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant Harvard Business School Press
  • (Book) Govindarajan V. & Trimble Ch. (2007) “10 Rules for Strategic Innovators: From Idea to execution” Harvard Business School Press Boston, Massachusetts
  • (Book) Markides, C. C. (1999) All the right moves: a guide to crafting breakthrough strategy, Cambridge MA, Harvard Business School Press
  • (Book) Markides, C. C. (2013). Game-changing strategies: How to create new market space in established industries by breaking the rules. John Wiley & Sons.
  • (Video) What is Blue Ocean Strategy? Harvard Business Review
  • (Video) What is strategic innovation? – Professor Costas Markides
  • (Article) Assink, M. (2006),”Inhibitors of disruptive innovation capability: a conceptual model”, European Journal of Innovation Management, Vol. 9 Iss: 2 pp. 215 – 233
  • (Article) Chan Kim, W., & Mauborgne, R. (2004). Value innovation: The strategic logic of high growth. Harvard Business Review, 82(7-8), 172-180.
  • (Article) Choi, D., & Valikangas, L. (2001). Patterns of strategy innovation. European Management Journal, 19(4), 424-429.
  • (Article) Govindarajan, V., & Trimble, C. (2004). Strategic innovation and the science of learning. MIT Sloan Management Review, 45(2), 67.
  • (Article) Hamel (1998) “Strategy innovation and the quest for value”, Sloan Management Review, 39, p. 78
  • (Article) Markides, C. (1998). Strategic innovation in established companies. Sloan Management Review, 39(3), 31-42
  • (Article) Markides, C., & Charitou, C. D. (2004). Competing with dual business models: A contingency approach. The academy of Management executive, 18(3), 22-36.
  • (Article) Moingeon B. and Lehman-Ortegua  (2006) “Strategic Innovation: how to grow in mature markets” EBF, 24, Spring 2006, pp. 50-54
  • (Article) Schlegelmilch et al. (2003) ‘Strategic innovation: The construct, its drivers and its strategic outcomes’, Journal of Strategic Marketing, vol. 11, p. 117-132

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