Abstract
Abstract: Innovation in firms is discussed by using the notion of strategic reflexivity and applying a strategic innovation theory, which is within the evolutionary tradition. Market conditions and internal resources are the drivers of the innovation process. Firms manage their innovation process and market position through the strategy. Reflexivity is a social process in the firm in which managers and the employees consider the innovation process and the strategy. The social process includes organizational patterns, interaction and role patterns and organizational learning. The theory is applied to case studies of development of service concepts in service firms.
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