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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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Citations
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Assessing the origins, evolution and prospects of the literature on dynamic capabilities: A bibliometric analysis

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Thriving in the New: Implication of Exploration on Organizational Longevity:

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Developing dynamic capabilities to meet sustainable development challenges

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Does experience imply learning

TL;DR: In this paper, the authors argue that firms choose to repeat successful activities, thereby accumulating high experience with them, and that omitting to account for experience endogeneity may lead to incorrect conclusions from an empirically observed positive experience-performance relationship.
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A managerial perspective of dynamic capabilities in emerging markets: The case of the Russian steel industry

TL;DR: In this paper, the authors explore the relationship between organisational culture and knowledge management in the context of higher education in a small Central European country and conclude that dynamisms typically derive from the establishment of respective internal processes, followed by rapid decision making.
References
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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.