The literature recognises the link between the strategies of the parent firm and the project, but so far projects have been seen as subordinated to the firm strategy and are required to execute a pre-formulated firm strategy. However, due to the potential scope of Product Innovation Projects (PIPs), their project strategy may be a fundamental contributor to a new emerging firm strategy rather than a mechanism for execution of an existing firm strategy. Davila and Epstein (2014) refer to this as the ‘innovation paradox’ and outline different strategic approaches between the project and the firm depending on the context. For example, many PIPs have a project strategy of their own and seek to (i) gain acceptance for a project strategy that complements the current firm strategy, (ii) influence a new emerging firm strategy, or (iii) at the extreme, subordinate the firm to its strategy. Thus, the firm strategy influences project strategy and visa versa.

The four quadrants can then be described as follows:

The term ‘continuous innovation’ is used to describe this innovation effort.
The top-down incremental innovation effort was initiated to execute the strategy and objectives of the firm.
The strategy and objectives of the firm were developed by senior management.
The project was empowered to be creative to execute the current strategy and meet set goals.

The term ’empowered improvement ‘ is used to describe this innovation effort.
The bottom-up incremental innovation effort was initiated as the result of a structured process led by senior management.
The structured process enabled space for the project to suggest incremental developments to products and services.
The project was empowered to be inventive and to contribute to an evolving firm strategy and help refine firm objectives.

The term ‘strategic bet’ is used to describe this innovation effort.
The top-down radical innovation effort was initiated and led by senior management’s vision for a new breakthrough innovation.
The strategy and objectives of the firm were developed by senior management.
The project was empowered to execute the current strategy and expected to meet set goals.

The term ‘strategic discovery’ is used to describe this innovation effort.
The bottom-up radical innovation effort was initiated and facilitated by senior management.
Senior management facilitated and empowered the project to harness the insight and the genius of many people throughout the firm and its networks.
The project was empowered and expected to contribute to an evolving firm strategy and evolving firm objectives.

What quadrant is your project in and what are the implications to your project strategy?