The Dual Regimes of Digital Innovation Management

The pervasive integration of digital technology in traditionally physical products such as cars, heat pumps, and washing machines calls for revisiting the received innovation literature. To this end, this paper presents a competing logic framework for understanding digital technology in product innovation management. In doing this, we derive two idealized innovation regimes by distinguishing and assessing two broad streams of innovation research across the dimensions of organizing logic, market dynamics, and architectural design. Recognizing and elaborating inherent tensions between product innovation and IT innovation, the framework identifies a range of new challenges with implications for digital innovation management research and practice.