| The purpose of this dissertation is to examine the process of strategic innovation within a strategic business unit of a 90 year old, diversified corporation. It examines whether Burgelman's (1988) framework of strategy-making as social learning, resulting from his study of strategic change in internal corporate venture units applies to the more typical setting of operating system strategic business units. The present research investigates a deliberate attempt to develop new strategic capability through internal new product development, as experienced and recounted by the individuals involved.; This study is based on field data from one U.S. based, Fortune 500 firm which is the historically dominant leader in a product/market with changing technology. It examines the firm's intended strategy to pre-empt changes in its base technology. Ten retrospective accounts, as well as contemporaneous, archival documents were studied in detail.; A combination of quantitative and qualitative data analysis was employed. Computer-aided text analysis was used to decompose each interview transcript to calculate and summarize individual word use as a basis for comparison across transcripts. Qualitative, interpretive methods were used to maintain emphasis on individuals' meaning as a data form. The triangulation of both methods allowed systematic movement from individual word use to the personal knowledge represented by those words.; The events of this strategic effort evoked different interpretations by the participating individuals. These interpretations represented two distinct cognitive approaches, or logics, that evolved over time. Operating logic resulted from the belief that the effort was an incremental extension of existing firm capabilities and strategy. In contrast, innovating logic resulted from the realization that the effort was radically different, requiring new work relationships, language and learning. Further, it was found that the use of operating or innovating logic in situations of induced or autonomous strategic behavior had different inhibiting or enhancing effects upon the strategic process.; These findings are summarized in four propositions and three hypotheses regarding individual cognition and organizational strategic process. Recommendations for further research and implications for practice conclude this inquiry. |
