Innovative strategies in unstable environments: The case of Argentinean firms

This PhD thesis is about innovation, instability, and micro-heterogeneity. The theoretical motivation behind the research is the lack of satisfactory explanations about the existence of firms in Argentina that managed to cope much better than others firms with the country's instability and to compete based on innovation. The research question that has guided this thesis is why some firms are better prepared to cope with unstable environments. The findings suggest that the firm's learning capabilities and innovation investments are key elements to understanding why some firms are better prepared to deal with unstable environments, which is not because they are more likely to successfully innovate but because they have dealt better with the process of path creation. Firms with an innovation-based strategy have accumulated the competences necessary for taking advantage of environmental opportunities and avoiding environmental constraints. That is why some firms are better prepared than others to deal with unstable environments.