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Introduction Strategy renewal process enables firms to redefine the way to do business delivering more non-monetary value to customers with a higher level of operational effectiveness [Baden-Fuller and Stopford, 1994; Markides, 2000]. Strategic innovators can remain competitive and achieve profitable growth within the current competitive environmen...
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Context 1
... literature has widely emphasized that usually core capabilities become core rigidities [Leonard-Burton, 1992]. For this reason we choose to model a negative relation (feedback loop B 1 in Figure 3) between the use of past knowledge and the capacity to produce new knowledge for which the more realized knowledge the firms will produce the less will be the willingness to invest further resources in the development of new potential knowledge. From the point of view of top mangers the loop can be interpreted as follow: the more innovative strategies are implemented and the more top mangers devote efforts to exploit exiting knowledge base, the less will be resources dedicated to create, throught exploration process, new knowledge. ...
