Product innovation as micro-strategy: The 'innovation-based diversification' view

Seppo Hänninen*, Ilkka Kauranen

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review


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.
Original languageEnglish
Title of host publicationKnowledge Matters
Subtitle of host publicationTechnology, Innovation and Entrepreneurship in Innovation Networks and Knowledge Clusters
Number of pages22
ISBN (Electronic)9780230582262
ISBN (Print)9781403998729
Publication statusPublished - 30 Apr 2008
MoE publication typeA3 Part of a book or another research book


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