This paper empirically examines how business unit reorganization affects innovation, and explores how the learning process may mediate this relationship. Unit reorganization is the creation, deletion, or recombination of business units within a firm. Innovation is radical and involves product...

Tacit knowledge and cumulative learning underlie an evolutionary theory of business firm development and strategy. As one test case of the theory, this study examines firms' applied research and development activities. Evolutionary theory suggests that firms within an industry will tend both to...