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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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The Influence of Intellectual Capital on the Types of Innovative Capabilities

TL;DR: In this paper, the authors examined how aspects of intellectual capital influenced various innovative capabilities in organizations and found that human, organizational, and social capital and their interrelationships selectively influenced incremental and radical innovative capabilities.
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Organizational Ambidexterity: Antecedents, Outcomes, and Moderators

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Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators

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Dynamic capabilities: A review and research agenda

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Journal ArticleDOI

Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators

TL;DR: In this paper, the authors examined how environmental aspects (i.e., dynamism and competitiveness) moderate the effectiveness of exploratory and exploitative innovation and found that exploratory innovation is more effective in dynamic environments, whereas exploiting competitive environments is more beneficial to a unit's financial performance.
References
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Book

Mastering the Dynamics of Innovation

TL;DR: The dymanics of onnovation in industry dominant designs and the survival of firms product innovation as a creative force innovation and industrial evolution innovation in non-assembled products invasion of a stable business by radical innovation are discussed in this paper.
Journal ArticleDOI

Measuring Competence? Exploring Firm Effects in Pharmaceutical Research

TL;DR: This paper distinguishes between ‘component’ and ‘architectural’ competence, and using internal firm data at the program level from 10 major pharmaceutical companies shows that together the two forms of competence appear to explain a significant fraction of the variance in research productivity across firms.
Journal ArticleDOI

Customer power, strategic investment, and the failure of leading firms

TL;DR: In this paper, the authors present a model, grounded in a study of the world disk drive industry, that charts the process through which the demands of a firm's customers shape the allocation of resources in technological innovation.
Journal ArticleDOI

Capabilities, cognition, and inertia: evidence from digital imaging

TL;DR: The authors examined the relationship between managers' understanding of the world and the accumulation of organizational capabilities through an in-depth case study of the response of the Polaroid Corporation to the ongoing shift from analog to digital imaging.
Journal ArticleDOI

Research Note: How Valuable are Organizational Capabilities?

TL;DR: This paper observes that there are limits to the extent of the importance of organizational capabilities, and suggests that there can be an infinite regress in the explanation for, and prediction of, sustainable competitive advantage.
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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.