Product Innovation as Micro-Strategy: The ‘Innovation-Based Diversification’ View

Seppo Hänninen and Ilkka Kauranen
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Seppo Hänninen: Helsinki University of Technology
Ilkka Kauranen: Asia Institute of Technology

Chapter 8 in Knowledge Matters, 2008, pp 157-178 from Palgrave Macmillan

Abstract: Abstract Diversification strategy discussion has focused relatively little on the unintentional diversification caused by a product innovation which 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 with a case study of a consumer electronics product innovation. One of the key findings is that the micro-view offers a way to better understand innovation-based diversification, which is an unavoidable consequence of any product innovation in a company. A second finding is that the diversification indicators operate beyond the limits of the coherent product innovation concept.

Keywords: Knowledge Base; Product Innovation; Knowledge Level; Brand Equity; Strategic Management Journal (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-58226-2_8

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DOI: 10.1057/9780230582262_8

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