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Strategy Transformation Through Strategic Innovation Capability

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  • Tomoatsu Shibata
  • Mitsuru Kodama

Abstract

This paper presents a theoretical framework under which large companies should be able to bring about strategy transformation. Firstly, we present the concept of "strategic innovation capability," a corporate system capability to achieve corporate strategy transformation by strategic innovation. Then, we consider strategic innovation capability by comparing it to previous theories (dynamic capability, major innovation dynamic capability, breakthrough innovation capability). Secondly, we present the case example of strategy transformation at Fanuc, a company that holds the top global share in the numeric control (NC) market. In this case study research, we consider and analyze historically how the company aimed for new creativity in the NC market, developed innovative NC technology for the machine tool market, and using that technology energetically commercialized products. From the strategic innovation capability framework, the core theory of this paper, we also analyze and consider how top management made conscious efforts to form a new development organization within the company, and the processes involved in achieving strategy transformation to establish competitive superiority in this field. Finally, we discuss the implications drawn from this case analysis, and the issues for future research.

Suggested Citation

  • Tomoatsu Shibata & Mitsuru Kodama, 2013. "Strategy Transformation Through Strategic Innovation Capability," DSSR Discussion Papers 7, Graduate School of Economics and Management, Tohoku University.
    • Handle: RePEc:toh:dssraa:7
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    File URL: http://hdl.handle.net/10097/64984
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