Paradox resolution: A means to achieve strategic innovation

• Strategic innovation can be achieved through resolving paradoxical tensions.
• Paradox resolution leads to new market spaces, business models and customer values.
• Logic of contradiction allows for creativity and hence unique solutions to emerge.
• Paradoxical thinking enables firms to be more in tune with the business landscape.

SummaryAn extensive amount of literature has proposed a number of ways for firms to achieve strategic innovation. Of the different approaches suggested, one that deserves more attention is paradox resolution. Despite the growing amount of evidence showing the benefits of managing seemingly diametrically opposed demands, a limited amount of empirical research connects the management of paradoxical tensions to strategic innovation. This paper aims to partially fill this research gap by first reviewing the existing research on paradox resolution and strategic innovation. It then discusses how the two concepts are connected. Cases drawn from two UK retailers are presented to illustrate the possibility of integrating seemingly opposing strategic propositions as a means to discover new ways of competing.