Strategy & Innovation Management
Summary of Articles + Lectures
September 2022 – University of Groningen
Lecture 1: Introduction to Strategy & Innovation Management
- Pisano, G. (2015) You Need an Innovation Strategy. Harvard Business Review, 46
(June): 44- 54.
- Zollo, M., Minoja, M., & Coda, V. (2018) Toward an Integrated Theory of Strategy.
Strategic Management Journal, 39(6): 1753-1778.
Lecture 2: Organizational Creativity, Structure & Leadership
- Gong, Y., Kim, T-Y., Lee, D-R., and Zhu, J. (2013) A Multilevel Model of Team Goal
Orientation, Information Exchange, and Creativity. Academy of Management Journal,
56 (3): 827–851.
- Herrmann, D. and Felfe, J. (2014) Effects of Leadership Style, Creativity Technique
and Personal Initiative on Employee Creativity. British Journal of Management, 25:
209–227
- Perry-Smith, J. E. and Mannucci, P. V. (2017) From Creativity to Innovation: The
Social Network Drivers of the Four Phases of the Idea Journey. Academy of
Management Review, 42 (1): 53–79.
Lecture 3: Sources of Innovation
- Bradonjic, P., Franke, N., and Lüthje, C. (2019). Decision-makers’ Underestimation
of User Innovation. Research Policy, 48 (6), 1354-1361.
- Grimpe, C., and Kaiser, H. (2010) Balancing Internal and External Knowledge
Acquisition: The Gains and Pains from R&D Outsourcing. Journal of Management
Studies, 47 (8): 1483-1509.
- Zahra, S., and George, G. (2002) Absorptive Capacity: A Review,
Reconceptualization, and Extension. Academy of Management Review, 17 (2): 185-
203.
Lecture 4: Uncertainty & Strategy
- Krychowski, C., and Quelin, B. (2010) Real Options and Strategic Investment
Decisions: Can They Be of Use to Scholars? Academy of Management Perspectives,
24 (2): 65-78.
- Milliken, F. (1987) Three Types of Perceived Uncertainty about the Environment:
State, Effect, and Response Uncertainty. Academy of Management Review, 12 (1):
133-143.
- Schoemaker, P. (1993) Multiple Scenario Development: Its Conceptual and
Behavioral Foundation. Strategic Management Journal, 14 (3): 193-213.
Lecture 5: Innovation in MNCs
- Almeida, P., and Phene, A. (2004) Subsidiaries and Knowledge Creation: The
Influence of the MNC and Host Country Innovation. Strategic Management Journal,
25 (8/9): 847-864.
- Berry, H. (2018). The Influence of Multiple Knowledge Networks on Innovation in
Foreign Operations. Organization Science, 29(5), 855-872.
- Sofka, W., Shehu, E., and de Faria, P. (2014) Multinational Subsidiary Knowledge
Protection - Do Mandates and Clusters Matter? Research Policy, 43(8): 1320-1333.
,Lecture 6: Innovation & Strategy at the Corporate Level
- Foss, N.J. (1997) On the Rationales of Corporate Headquarters. Industrial and
Corporate Change, 6(2): 313-338.
- Chung, W. and Alcácer, J. (2002) Knowledge Seeking and Location Choice of
Foreign Direct Investment in the United States. Management Science, 48(12): 1534-
1554.
- Klingebiel, R., and Rammer, C. (2013): Resource allocation strategy for innovation
portfolio management, Strategic Management Journal, 35(2): 246-268.
Lecture 7: Design and Structure
- Liebeskind, (1996): Knowledge, strategy, and the theory of the firm. Strategic
Management Journal, 17: 93-109.
- Lam, A. (2010) 'Innovative organizations: structure, learning and adaptation',
Innovation Perspectives for the 21st Century, Madrid: BBVA, Spain, pp.163-175.
- Bos, B., Faems, D., and Noseleit, F. (2017): Alliance concentration in MNCs:
Examining alliance portfolios, firm structure, and firm performance. Strategic
Management Journal, DOI: 10.1002/smj.2652.
2
, 1-1 Pisano: you need an innovation strategy
An explicit innovation strategy helps you design a system to match your specific competitive
needs
An innovation strategy should answer the following:
1. How will innovation create value for potential customers?
2. How will the company capture a share of the value its innovations generate?
3. What types of innovations will allow the company to create and capture value and
what resources should each type receive
> technological VS business model
Four types of innovation:
1. Routine innovation: builds on existing technologies & fits with existing business
model (vast majority of profits is created here)
2. Disruptive innovation: requires new business model, but is not necessarily a
technological break-through
3. Radical innovation: polar opposite of disruptive innovation. Challenge here is purely
technological
4. Architectural innovation: combines technological and business model disruptions.
Most challenging to pursue
Managing trade offs:
• Crowdsourcing
• Customer involvement
→ demand-pull approach (finding customers highly challenging problems and then figuring
out how the company’s cutting-edge technologies can solve them)
→ supply-push approach (developing technology and the finding or creating a market)
Four tasks when implementing an innovation strategy;
1. Answering the question “How are we expecting innovation to create value for customers
and for our company?” and then explain that to the organization.
2. Creating a high-level plan for allocating resources to the different kinds of innovation.
3. Managing trade-offs.
4. Recognizing that innovation strategies must evolve.
1-2 Zollo: Toward an integrated theory of strategy
Corporate strategy: definition on second page in summary
Three strategic management firm strategies:
1. Competitive strategy → cost VS differentiation
2. Growth strategy → organic VS external/acquisitive
3. The firm’s stakeholder strategy → integrated VS arms-length modes of interaction
Two bundles of decisions can potentially optimize value creation.
Integration mechanisms:
1. Customer advantage
2. Stakeholder advantage
Entrepreneurial formula/ pioneering framework elements:
1. Competitive system
2. Products that the company offers
3. Stakeholder system
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