SUMMARYThis paper calls upon strategy researchers to employ a more holistic view of research into the firm. In the past the division between theoutside‐in, or market selection and positioning perspective, and theinside‐out, or management of internal change perspective, has acted to spur advances in knowledge. Now it is acting as an impediment to further progress. One avenue through which these perspectives can fruitfully be combined is in a deeper exploration of the role of innovation and corporate entrepreneurship. Four propositions are offered upon which a useful platform can be built and it is suggested that the implied research agenda will help the field move forward, fas