Innovation in firms is often constrained by limited resources, restricting the types of innovation that can be pursued in tandem, and combined into the overall strategy. However, studies on complementarities derived from combining innovation types (“innovation modes”) have not carefully evaluated the role of resources. Drawing on neo-Penrosean characteristics of resources and resource allocation strategies, we elaborate on the role of fungible and scale free resources, and resource reallocation, in reducing innovation-related costs by conferring firms greater reusability of resources. We subsequently use fsQCA to explain how innovation-specific resourcing choices interplay with innovation modes to underpin (un)successful innovation strategies. Our findings indicate that reusability of resources is a necessity for high innovation performance. Less complex innovation modes are enabled by resourcing choices that are high in redeployability. In contrast, unsuccessful innovation strategies do not harness resource reuse adequately, or fail to integrate process innovations.
