The Role of Strategic Orientation in Business Innovation

Focusing on technology-driven industries, this paper describes a model by which it is possible to identify and evaluate business strategies according to a matrix of four generic strategy categories. The model may assist in assuring that business functional strategies fit the requirement of the adopted business orientation. The model is illustrated by our interpretation of past and present strategies followed by leading firms in a variety of industries. We identify four generic categories of business strategic orientations: strategies designed to reallocate earnings or acquire greater market share, strategies that expand the profit pool by implementing innovations, strategies designed to readjust competitive positions in a declining market, or strategies designed to capitalize on "the next big thing." Examples of hightech companies with one or more of these strategic orientations are provided. The framework presented in this article contributes to research in strategic management, and supports m anagers in making business decisions for high-tech companies.