Innovative product portfolios by navigating markets and technology

Abstract

This paper compares systematically the two theoretical models of adaptation, ecological and evolutionary. Using notions from innovation, learning, and balanced change, the two models are contrasted in the context of 73 European, Japanese, and U.S. industrial robotics firms that introduced new robotics products in 1984-1997. A hybrid of ecological and evolutionary views is found to predict innovativeness of these companies best. When organizations use new, uncertain knowledge to create new products, ecological view is relevant. When they use existing, predictable knowledge to create new products, evolutionary view is appropriate. These findings suggest a redefinition of balance in organizational adaptation, and explain how established firms can change through product innovation.