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Journal ArticleDOI

The dynamics of product innovation and firm competences

Erwin Danneels
- 01 Dec 2002 - 
- Vol. 23, Iss: 12, pp 1095-1121
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TLDR
This study examines how product innovation contributes to the renewal of the firm through its dynamic and reciprocal relation with the firm's competences through field research in five high-tech firms of varying age, size, and level of diversification.
Abstract
This study examines how product innovation contributes to the renewal of the firm through its dynamic and reciprocal relation with the firm's competences Field research in five high-tech firms of varying age, size, and level of diversification is combined with analysis of existing theory to develop the findings of the study Based on the notion that new products are created by linking competences relating to technologies and customers, a typology is derived that classifies new product projects based on whether a new product can draw on existing competences, or whether it requires competences the firm does not yet have Following organizational learning theory, these options are conceptualized as exploitation and exploration These organizational learning concepts are used to gain a dynamic and path-dependent view of product innovation and firm development, and to reveal the unique nature and challenges of different types of product innovation Copyright © 2002 John Wiley & Sons, Ltd

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References
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TL;DR: In this paper, the authors describe the process of inducting theory using case studies from specifying the research questions to reaching closure, which is a process similar to hypothesis-testing research.
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TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
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TL;DR: In this paper, the authors explore the usefulness of analyzing firms from the resource side rather than from the product side, in analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested.
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Trending Questions (1)
How do firms identify and prioritize innovation domains based on trends in customer needs?

Firms identify and prioritize innovation domains by linking competences to technologies and customers, categorizing projects as exploitation or exploration, and seeking input from new customers for competence development.