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

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Knowledge Matters

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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.

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Author information

Authors and Affiliations

  1. Lahti Centre, Helsinki University of Technology, Finland

    Seppo Hänninen

  2. Asia Institute of Technology, Thailand

    Ilkka Kauranen

Authors
  1. Seppo Hänninen
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  2. Ilkka Kauranen
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Editor information

Editors and Affiliations

  1. School of Business of the George Washington University, Washington, DC, USA

    Elias G. Carayannis (Full Professor of Science, Technology, Innovation and Entrepreneurship) (Full Professor of Science, Technology, Innovation and Entrepreneurship)

  2. International Entrepreneurship Academy, Sweden

    Piero Formica (Professor for Knowledge Economy, Innovation and Entrepreneurship) (Professor for Knowledge Economy, Innovation and Entrepreneurship)

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© 2008 Seppo Hänninen and Ilkka Kauranen

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Hänninen, S., Kauranen, I. (2008). Product Innovation as Micro-Strategy: The ‘Innovation-Based Diversification’ View. In: Carayannis, E.G., Formica, P. (eds) Knowledge Matters. Palgrave Macmillan, London. https://doi.org/10.1057/9780230582262_8

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