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Sustainable Growth Through Strategic Innovation

Driving Congruence in Capabilities

Mitsuru Kodama

From detailed reviews of existing dynamic capabilities, this book presents a theoretical model of a strategic innovation system as a corporate system capability to enable a large company to achieve strategic innovation. The book includes in-depth case studies to illustrate the importance of strategic innovation capabilities.
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Chapter 10: Implications and future research issues: Schumpeter’s view of innovation

Driving Congruence in Capabilities

Mitsuru Kodama

Extract

Strategic innovation dynamically brings about strategic positioning through new products, services and business models, and is a dynamic view of strategy that enables a large corporation to maintain its competitiveness and establish sustainable growth. For these reasons, large corporations have to be innovators that can reinforce their existing positions (businesses) through incremental innovation, while at the same time constantly renew or destroy existing business through radical innovation. From detailed reviews of existing dynamic capabilities theories, and further theories deeply related to the characteristics of corporate or organizational capabilities, this book presents a theoretical model of a strategic innovation system (and a sustainable strategic innovation model) as a corporate system capability to enable a large company to achieve strategic innovation. Furthermore, through several case studies, the book discusses the importance of strategic innovation capabilities to achieve a dynamic spiral of the two completely different ordinary and dynamic capabilities on the Capabilities Map, skillfully used and combined to achieve swift or slow incremental innovation as exploitation and radical innovation as exploration. This final chapter presents implications gained from the theoretical framework of this book and a number of case studies, a conclusion, and future research issues.

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