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

In: Knowledge Matters

Author

Listed:
  • Seppo Hänninen

    (Helsinki University of Technology)

  • Ilkka Kauranen

    (Asia Institute of Technology)

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.

Suggested Citation

  • Seppo Hänninen & Ilkka Kauranen, 2008. "Product Innovation as Micro-Strategy: The ‘Innovation-Based Diversification’ View," Palgrave Macmillan Books, in: Elias G. Carayannis & Piero Formica (ed.), Knowledge Matters, chapter 8, pages 157-178, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-58226-2_8
    DOI: 10.1057/9780230582262_8
    as

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