Barriers to strategic innovation in industrial markets

Abstract

This report examines strategic innovation efforts of companies in an industry displaying traits of maturity. Strategic innovation efforts intend to create superior customer value and competitive advantage. Realizing the full benefits of these efforts necessitates that companies change their view on existing relationships in the supply chain of the industry under consideration. Based on case study research in nine installation companies in the Dutch electro technical industry, we conclude that a mismatch between intended strategies and the dominant logic of these companies (and their business partners) impedes strategic innovation efforts. We thus identify barriers to strategic innovation. This report suggests strategy options that have the potential to overcome these barriers and relate these options to managerial mindsets and cognitions with respect to competitive strategy, organization and network relationships.