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Innovate and Change: Understanding the Effects of Novel Innovation and Search on Strategic Change
Keywords: innovation, strategic change, search, exploration, pharmaceutical
Abstract: Behavioral and organizational learning perspectives on strategic change suggest that organizations can take actions and develop capabilities to increase their knowledge and awareness of the external environment in order to survive. We investigate both innovation and search capabilities as a route for renewal and change. We suggest that utilization of knowledge gained from innovation and search capabilities is dependent upon motivation and capabilities for change stemming from a firm’s product portfolio, such as past product performance and order of entry. As such, innovation can affect strategic change differently depending on the type and characteristics of the innovation.