Dynamic innovation execution capabilities How mature firms successfully execute innovation strategies

This dissertation examines how large, mature firms execute innovation strategies through dynamic capabilities. A multi-case study of seven firms across diverse industries identifies five generic innovation execution capabilities: opportunity identification, opportunity seizing, initiative coordination, initiative execution, and innovation sourcing. Reliable innovation strategy execution additionally requires embedding innovation leadership in the strategic apex and developing three governance and growth capabilities: value management, tension management, and innovation capability development.
The study examines the microfoundations, form, locus, and agents of innovation capabilities, and distinguishes two general approaches to organizing innovation: integrated versus differentiated.
The propositions support a reconciliation of two divergent perspectives in dynamic capabilities literature: the firm-specific view of Teece and colleagues, and the replicable process view of Eisenhardt and Martin. The unresolved debate between these views has hindered both theoretical progress and practical application of the DC perspective.
The findings further underline the value of a configurational approach to explain how innovation capabilities can be aligned with each other and with organizational design. Earlier approaches fall short in assessing capability portfolios and integrating capability dimensions.
The three-dimensional assessment model developed in this research enables scholars to aggregate functional capabilities to the firm level and to evaluate and compare firms' abilities to execute innovation strategy. For practitioners, the framework supports the design of a comprehensive innovation capability portfolio and the microfoundations of an innovation-supportive organization. The dissertation stresses the need to choose an overall innovation approach and secure executive involvement in execution.