FIRM STRATEGY AND INNOVATION DYNAMICS: A CONCEPTUAL MODEL OF INNOVATION COMPETITION

Abstract. Firms of different business strategy types reveal behavioural patterns in their innovation and performance while facing various difficulties as they seek to adapt a turbulent competitive environment. Accordingly, we want make progress by using the dynamic view, which follows Schumpeterian perspective firm behaviour through (business) strategy. We advocate approach strategic influencing that is appropriate for small mediumsized firms well giant corporations highly industries catching-up economies. Thus, combining theoretical approaches develop an alternative conceptual ‘cost-advantage leader-follower’ (CALF) model when are developing cost-cutting process inventions.