Abstract
It is attempted to develop a theoretical framework for a strategic shift in a conventional big business. First, a concept of Strategic Innovation Capability is defined, which is the capability of a company as a system to shift the corporate strategy by innovation, and compared with foregoing theories including Dynamic Capability, Major Innovation Dynamic Capability, and Breakthrough Innovation Capability. Second, the concept is applied to a case study on Nippon Telegraph and Telephone's (NTT's) strategic innovation to establish a competitive edge in the broadband market, for which the top management identified promising products, services and business models and deliberately presented them as challenges to the company's traditional strategy, competence and corporate culture. Theoretical and practical implications of the case study are discussed. The article is concluded by future tasks for the study.
