Heads or tails in innovation strategy formulation? Porterian or Penrosian, let context determine

In strategy research, resources and products can be considered two sides of the same coin. This conceptual paper turns heads into tails as it revisits the Porterian industrial economics-based Booz Allen Hamilton methodology for innovation strategy formulation from a Penrosian resource-based view. Seven propositions are generated, two distinct methodologies emerge, and four contextual factors are discussed. This paper proposes that the Penrosian methodology is more suitable in turbulent environments while the Porterian is more suitable in less turbulent environments. Furthermore, it illustrates how the resource based concept can be incorporated into a potentially very practical tool for innovation strategy formulation.