Title: Product innovation as micro-strategy

Authors: Seppo Hanninen, Ilkka Kauranen

Addresses: Helsinki University of Technology, Lahti Center, Saimaankatu 11, 15140 Lahti, Finland. ' School of Management, Asian Institute of Technology, Phathumthani 12120, Thailand

Abstract: Diversification strategy discussions had relatively little focus on the unintentional diversification caused by a product innovation that does not match the existing business strategy of a company. The objective of the study is to deepen the understanding of product innovation-based diversification as a corporate micro-strategy. The new theory development is illustrated by a case study. A finding is that the micro-view offers a way to better understand the innovation-based diversification, which is an unavoidable consequence of any product innovation in a company. Another finding is that the diversification indicators operate beyond the limits of the coherent product innovation concept.

Keywords: innovation; micro-strategy; product innovation; knowledge levels; knowledge bases; knowledge-based view; learning; diversification; new product development; NPD.

DOI: 10.1504/IJIL.2007.012580

International Journal of Innovation and Learning, 2007 Vol.4 No.4, pp.425 - 443

Published online: 23 Feb 2007 *

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