Exploring a Strategic Turn: Case Study of Innovation and Organizational Change in a Productivist Dairy

Some firms within the conventional agri-food processing industry change their business strategy by trying to innovate towards alternative foods, like regional foods. For firms which are part of a larger organization or integrated in a group of companies this is a special challenge. The purpose of this paper is to explore what happens when a firm within a large and complex organization tries to turn from a productivist strategy to a differentiated strategy. This exploration uses a case study from the Norwegian dairy industry. The case shows that powerful industrial conventions and lack of suitable organizational conditions can be a hindrance for organizational change. Organizational capabilities to change routines and conventions have significant influence on the result of the innovation process.