The Impact Of Strategic Renewal On Firm Innovativeness

Research in strategic management and entrepreneurship has been addressing issues of strategic renewal and innovativeness. As the link of strategic renewal and firm innovativeness is not well understood, we assess how different types of strategic renewal activities affect a firm’s innovativeness. In this study, we conceptualize strategic renewal as a specific set of activities that a corporation can employ to increase its degree of innovativeness. Specifically, we develop in-depth theorizing on how renewing specific organizational dimensions, individually and collectively affect the likelihood that corporations can increase their overall innovativeness. Preliminary insights from expert-interviews and data from 60 business units in a large multinational corporation support our predictions. As such, the study offers valuable contributions to corporate entrepreneurship literature as well as on the determinants and outcomes of strategic renewal.