Explaining the process of innovation: The dynamic reconciliation of action and structure

Problems of action and structure underpin key issues in research on innovation processes. The question of entrepreneurial activity is an enduring one, from the risk-taking actor debate right through to recent discussions of strategic leadership and new venturing for wealth creation. But we can also detect deterministic tendencies in those arguments that find innovation activity defined by the sector's institutionalized regime or paradigm. To this extent, concern for the reconciliation of action and structure has been particularly neglected. Drawing on insights from structuration theory, institutionalism and resource dependence, this article develops a new model that attempts to reconcile the action-structure dichotomy in the innovation process in industry. The article concludes by considering the implications of this model for issues of life cycle effects, technology strategy and systems of innovation.