New strategic management and global innovation economy

Abstract

The paper deals with the challenges of the global innovation economy for strategic decision-making in the conditions where the acceleration of change through innovation is at the core of the wealth creation. The importance of the new strategic management concept from the aspect of contemporary business is considered. The implications of intellectual capital for global innovation economy and for strategy creation and realization are also analyzed. Intangible assets are gaining crucial importance for improving business performance in a dynamic environment. The focus is on competitive strategy and on creating sustainable competitive advantage in this context. Diverse networks of intra-firm relationships, as well as of extra-firm relationships with various external stakeholders, are becoming necessary. The paper also concentrates on the fact that the concept of competitive advantage is now being seen differently, taking into account contributions of a firm to the organizational networks. New strategic management approach also promotes the development of proactive strategic mindsets. Capability space, as a special type of mental space, comprises views of resources, competencies and innovation dynamics. Proactive and creative organizations capable of shaping external environment, explore the new ways to stimulate communication. The paper also highlights the changes in strategic management orientation and practices, and the new strategic mindset for the global innovation economy.