Explores the distinctive behaviours and organizational capabilities which enable firms to innovate successfully. Identifies four aspects of innovation which sustain the firm’s abilities to deliver superior customer value. These are: culture and climate; the management of assets and capabilities; structure and controls; and new product and process development. Argues that the over‐reliance on the traditional approach to innovation – the development of new products and services – is too limited a view and may even be preventing business leaders from adopting this broader, organisational approach where the contribution from each area of the business can be multiplicative when kept in balance. Finally, issues the role of business leaders in removing barriers to innovation and nurturing a multi‐faceted approach across the firm and draws conclusions.
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