Article

Defining and identifying disruptive innovations

Authors:
  • Independent Scholar
To read the full-text of this research, you can request a copy directly from the authors.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

... The management of DI is challenging due to their characteristics, so their clear description is important: DI are not valued by a company's mainstream customers, especially at their market launch, because they perform worse on the characteristics that are important to this customer segment (e.g., the first digital camera had poorer image quality compared to the analog camera) [1,2,13]. DI specifically address the needs of so-far unserved customers by offering generally more user-friendly products that are either cheaper and perform worse (low-end disruption) or more expensive and perform better (high-end disruption) compared to the reference solution [1,13,15,16]. Low-end DI in particular target pricesensitive customers initially at their market launch, through which only low margins can be achieved so that they are not very attractive for established companies [1,2]. As DI is further developed, it increasingly serves the needs of mainstream customers, who perceive and accept DI as an alternative solution and migrate from the previous product/company [1,3]. ...
... Most of the existing approaches focus on a rather passive handling of DI. For example, they focus on recognizing the disruptive potential of innovations already introduced to the market [15,16,18] and on actions for delaying the disruption of the market by corresponding competitive reactions [13,18]. However, these passive approaches do not reduce the risk of disruption, as it is often not possible to respond appropriately to DI that have already been launched [5,7]. ...
... Criteria to analyze the disruptiveness of product ideas, based on[1,2,5,7,13,15,16,18,3 ...
Article
Full-text available
Disruptive innovations (DI) have the potential to fundamentally change markets and their power relations: Specifically, established companies are confronted with the threat of being forced out of the market by DI. At the same time, companies also have the opportunity to control the market’s development by developing DI themselves. This raises the question of how a proactive management of DI can be systematized. Here, the approach of innovation portfolio management (IPM) provides support by identifying, evaluating, and selecting a company’s most promising product ideas. The management of DI is challenging due to their characteristics, such as diversity, high uncertainty, especially with regard to customer acceptance, difficult comparability with existing products, potential for cannibalization, and substitution of existing products. For this reason, new approaches to managing DI are required in literature and practice. This paper presents a novel methodology to support—especially established—companies in proactively generating DI via existing processes in their IPM. For this purpose, the methodology supports the early identification of the product idea’s disruptive potential so that these can be handled appropriately in the further course of the process, such as the evaluation of all product ideas in the company during IPM. Thus, the risk can be minimized that promising DI are not rejected due to unsuitable procedures, but are brought to market maturity. The methodology contributes to the literature by showing how DI can be pursued embedded in existing corporate structures and also in competition with other product ideas in the company—in existing approaches, DI is primarily considered singularly and detached from the existing corporate context. The methodology is validated by the example of the digital camera, which disrupted the photo industry, as well as through interviews in a practical context.
... Henderson and Clark (1990) define radical technologies as a combination of engineering and scientific skills that allow the creation of entirely novel products or processes which offer unprecedented performance features, and/or standard features that provide significant cost or performance-based improvements to existing technologies. They offer a more sophisticated means of fulfilling customer needs (Leifer and McDermott, 2000), and can be completely radical, or constitute a radical use of an existing normative technology only formerly utilized in other fields (Nagy et al., 2016). The degree of novelty possessed by a radical technology has been theorized (Ibid) to be threefold: the degree to which it represents radical functionality (whether the technology allows users to undertake a new behavior or task that would be impossible to accomplish utilizing existing technologies); discontinuous technical standards, or the extent to which new standards deviate from existing technical standards, via the utilization of new materials, processes, methods and knowledge barriers, and ownership of a new technology (which can determine how the new technology might be appropriated, by whom, Ukobitz and R. Faullant and using which specific protective legal mechanisms such as patents or open source assets to execute (Nagy et al., 2016). ...
... They offer a more sophisticated means of fulfilling customer needs (Leifer and McDermott, 2000), and can be completely radical, or constitute a radical use of an existing normative technology only formerly utilized in other fields (Nagy et al., 2016). The degree of novelty possessed by a radical technology has been theorized (Ibid) to be threefold: the degree to which it represents radical functionality (whether the technology allows users to undertake a new behavior or task that would be impossible to accomplish utilizing existing technologies); discontinuous technical standards, or the extent to which new standards deviate from existing technical standards, via the utilization of new materials, processes, methods and knowledge barriers, and ownership of a new technology (which can determine how the new technology might be appropriated, by whom, Ukobitz and R. Faullant and using which specific protective legal mechanisms such as patents or open source assets to execute (Nagy et al., 2016). We argue that 3DPT fulfils the three aforementioned criteria, allowing it to be characterized as a radical technology. ...
Article
Full-text available
Radical technologies such as 3DPT (3D printing technology) continue to disrupt traditional manufacturing processes, perhaps even offering the key to long-term organizational survival. These radical forces appear to increase the pressure on internal and external organizational stakeholders to recognize, adopt and adapt to new technologies in order to sustain organizational competitiveness. This research subsequently investigates the key drivers in the organizational adoption of 3DPT to identify whether adoption is driven by a desire for homogeneity, or by a purely rationalistic evaluation of the perceived intrinsic value of the technology for the organization. This research surveyed 114 manufacturing firms operating in the Mexican footwear cluster to identify the impact of complex institutional forces on the adoption of radical 3DPT technologies. Data was analyzed using partial least squares structural equation modeling, concluding that mimetic, alongside normative, isomorphic pressures, exerted a substantial impact on the 3DPT adoption decision. While competitor behavior appeared to represent significant driver for adoption, our results also indicated that normative forces acted decisively on evaluations of the technology's perceived value. We found no evidence of coercive pressures, also noting a negative relationship between low adoption rates and institutional potential. The study concludes with an observation that isomorphism can be leveraged to actuate adoption rates, with recommendations for further research identified and research limitations addressed.
... A digital platform provides various data as a basis for business analysis. Therefore, SMEs are increasingly adapting to business changes to gain added value, consumer con dence, and business levels locally, nationally, and globally (Gobble, 2016;Nagy et al., 2016). Furthermore, this study analyses that disruptive innovation must be carried out by these SMEs simultaneously from their internal control systems, business processes, products, and services, to obtain optimal results. ...
... SMEs should be skilled in looking at a business's complexity, immediately adapting it to survive in uctuating business conditions, and not ignoring regulations. The renewal revolution moves linearly with the needs and interests of particular market segments to achieve a competitive advantage(Nagy et al., 2016;Wan et al., 2015). SMEs identify business opportunities that provide options to take advantage of or create momentum within their internal businesses(Chen et al., 2017). ...
Preprint
Full-text available
This study investigates: (1) How do the Indonesian SMEs posit sociodynamic factors and disruptive innovation to gain resilience and sustainability? (2) How do they behave when employing sociodynamic factors and disruptive innovation? (3) Why do they formulate strategic policies for the sociodynamic factors and then innovate disruptively? This research infers that those SMEs posit sociodynamic factors to increase their businesses’ capacity by expanding their social networks and building synergy and business alliances with others. These SMEs intensively catch information about future probable economic benefits to their internal businesses. Moreover, they encourage themselves to carry out disruptive innovations that create distinctive products and new market segments. The authors designed this research method with a qualitative approach. There are three methods of data collection: in-depth interviews, observations, and document studies. Furthermore, this research selects informants from Indonesian SMEs using purposive criteria, such as their total assets or having a net income above USD 1 million (IDR 14 billion), with no restrictions on their field of business. Thus, this study firstly raises reasons why Indonesian SMEs have overcome economic downturns using sociodynamic factors and disruptive innovation. Second, the researcher shows that the Indonesian Ministry of SMEs issued policies with a fallacy, focusing on the digital economy only. Otherwise, this ministry should encourage SMEs to have a bundled knowledge of sociodynamics and disruptive innovation. Third, this study contradicts the evidence from the barriers to the Indonesian SMEs’ capability enhancements in digital transformation. Otherwise, this study evidenced that most Indonesian SMEs adopt low-single-platform information.
... Logo, as inovações disruptivas são possíveis porque iniciam em um mercado de baixo custo (low-end) em que as inovações fornecem características semelhantes às tecnologias existentes, mas custam substancialmente menos (Christensen & Raynor, 2003;Nagy et al., 2016), por exemplo o Airbnb (Guttentag, 2015). Por outro lado, criam uma nova rede de valor, como as rupturas de novo mercado (new-market) que oferecem produtos mais simples de usar, por exemplo os computadores pessoais e a Netflix (Christensen et al., 2015;Christensen & Raynor, 2003) ou seja, cria uma nova demanda por uma nova tecnologia (Nagy et al., 2016). ...
... Logo, as inovações disruptivas são possíveis porque iniciam em um mercado de baixo custo (low-end) em que as inovações fornecem características semelhantes às tecnologias existentes, mas custam substancialmente menos (Christensen & Raynor, 2003;Nagy et al., 2016), por exemplo o Airbnb (Guttentag, 2015). Por outro lado, criam uma nova rede de valor, como as rupturas de novo mercado (new-market) que oferecem produtos mais simples de usar, por exemplo os computadores pessoais e a Netflix (Christensen et al., 2015;Christensen & Raynor, 2003) ou seja, cria uma nova demanda por uma nova tecnologia (Nagy et al., 2016). Nas última décadas, com a integração das tecnologias e recursos digitais que mudaram radicalmente a natureza dos produtos e serviços, emerge um tipo de disrupção considerada digital (Yoo et al., 2012, Tekic & Koroteev, 2019. ...
Conference Paper
Full-text available
DIGITAL E CAPACIDADES DINÂMICAS USANDO ANÁLISE DE REDES SOCIAIS RESUMO O objetivo deste trabalho é identificar e analisar a estrutura social e as redes relacionais no campo conceitual que vincula a inovação disruptiva digital às capacidades dinâmicas. As redes foram construídas a partir da coleta de 1.351 artigos científicos publicados no período entre 2010 a 2021 em periódicos indexados considerando as bases Web of Science (WoS) e Scopus com o apoio do software Gephi. Os resultados apontam que a Inglaterra, Estados Unidos, França, Itália e China se destacam, pois são mais proeminentes tanto em termos de quantidade como pela força dos laços estabelecidos. Uma particularidade que pode ser observada é que as parcerias mais importantes estão direcionadas para as tecnologias que envolvem a área de medicina e saúde, organizações sem fins lucrativos para combater a desigualdade em países emergentes e empresas de tecnologia. A principal conclusão é que esse é um campo emergente de estudo em que as relações apontadas tendem a se fortalecer e se estruturar o que aumenta a possibilidade para que estudos futuros sejam direcionados em diversas frentes. A disrupção digital (DD) pode ser conceituada como "os processos que se desdobram rapidamente por meio dos quais a inovação digital altera fundamentalmente lógicas historicamente sustentáveis para criação e captura de valor, separando e recombinando vínculos entre recursos ou gerando novos" (Skog et al., 2018, p. 432). Por meio das novas tecnologias digitais, a DD muda a experiência do cliente, os processos e os modelos de negócios, alterando assim como o valor é co-criado pelos atores em um ecossistema (Bolton et al ., 2019). Substitui, por consequência, produtos tradicionais por aparatos digitais criando novas oportunidades de mercado (Naimi-Sadigh et al., 2021). A DD é um tipo de turbulência ambiental que se origina no nível da empresa e tem o potencial de produzir desordens no nível nas estruturas das industriais estabelecidas (Skog et al., 2018) que quase sempre tropeçam nesse tipo de inovação (Christensen, 2000). Uma questão frequente na literatura aponta razões pelas quais incumbentes falham para detectar ou lidar com inovações disruptivas para tentar explicar esses desafios (Riemer & Johnston, 2019). Christensen (1997), por exemplo, avalia que elas devem investir nas capacidades existentes para adiar a interrupção. Frequentemente, os estudos examinam os recursos e as capacidades dos incumbentes (Karimi & Walter, 2015) em resposta à disrupção digital. Devido à complexidade e influência, nos últimos anos houve um forte impulso na pesquisa científica relativo a estes campos teóricos e pesquisadores têm conduzido uma ampla variedade de estudos (Skog et al., 2018). Esses esforços de pesquisa produziu uma quantidade crescente de informações que impõem desafios em relação à direção, ênfase e como os pesquisadores têm formado parcerias para conduzir estudos que vinculam as Capacidades Dinâmicas (CD) em resposta à Inovação Disruptiva Digital (IDD). Considerando esse contexto, este estudo levanta a seguinte questão: como está configurada a estrutura social que vincula a IDD às CD? Sendo assim, o objetivo principal é identificar e analisar a estrutura social e as redes relacionais no campo conceitual que vincula a IDD às CD, destacando as principais relações de parcerias desta comunidade científica (análise de coautoria de países e instituições). Para alcançar tal objetivo, este artigo apresenta uma
... Christensen (1997) identifies additional challenges with disruptive technological advancements, which are that both the market and the final product features are unknown in the beginning, and listening to dominant customers leads to failure. Furthermore, while identifying the effects of a disruptive innovation is relatively easy, definitions of what a disruptive innovation is, are quite elusive despite Christensen having identified that disruptive innovations are either new market innovations or low-end innovations (Nagy, Schuessler, and Dubinsky 2016). In clarifying this confusion, Nagy, Schuessler, and Dubinsky (2016) propose identifying disruptive innovations based on functionality, technical standards and ownership, and providing explanations as to how an innovation could be disruptive to some adopters and at the same time be not disruptive for others. ...
... Furthermore, while identifying the effects of a disruptive innovation is relatively easy, definitions of what a disruptive innovation is, are quite elusive despite Christensen having identified that disruptive innovations are either new market innovations or low-end innovations (Nagy, Schuessler, and Dubinsky 2016). In clarifying this confusion, Nagy, Schuessler, and Dubinsky (2016) propose identifying disruptive innovations based on functionality, technical standards and ownership, and providing explanations as to how an innovation could be disruptive to some adopters and at the same time be not disruptive for others. ...
Article
Full-text available
In an environment of changing customer needs, technological advancement and digitization, the importance of business model innovation in supporting companies to accrue benefits from increased digitization while counteracting threats has intensified. Factors driving business model innovation could be of value in facilitating business model innovation success and accrue benefits from increasing digitization. As the factors driving business model innovation are often triggers for the next cycle, however, there is limited empirical research on factors driving business model innovation. This paper presents empirical findings on factors driving business model innovation using unstructured interviews with nine executives from five sample companies in South Africa. Main finding from the research indicate that both external and internal factors such as existential crises, serve as valuable triggers for business model innovation. Furthermore, entrepreneurial inspirational leadership and quality of staff are important conditions for business model innovation success. The study findings imply that both companies and policymakers who seek to facilitate innovation need to take into account the impact of the business model innovation triggers on business model innovation success. The main contribution of the paper is the empirical finding on factors driving business model innovation using as a lens the sample case study companies.
... Gans (2016) argued that the term disruption has led to confusion, primarily because Christensen (2016) did not accurately define the term. Nagy, Schuessler, and Dubinsky (2015) argued that Christensen contributed to the confusion by covering two situations in the theory both having a different effect on existing markets: low-end innovations and new market innovation. ...
... These types of innovations are fundamentally different, although they may cause similar disruptions as explained in Christensen's theory (Markides, 2006). Nagy et al. (2015) revealed that most scholars who have attempted to describe disruptive innovations mostly focused on market characteristics, low-end innovations, and new markets. Instead, Nagy et al. postulated that disruptive innovation is better understood using Rogers' (2003) diffusion of innovation theory. ...
Book
Full-text available
Additive manufacturing (AM), also called 3-dimensional printing (3DP), emerged as a disruptive technology affecting multiple organizations’ business models and supply chains and endangering incumbents’ financial health, or even rendering them obsolete. The world market for products created by AM has increased more than 25% year over year. Using Christensen’s theory of disruptive innovation as a conceptual framework, the purpose of this multiple case study was to explore the successful strategies that 4 individual managers, 1 at each of 4 different light and high-tech manufacturing companies in the Netherlands, used to adopt AM technology into their business models. Participant firms originated from 3 provinces and included a value-added logistics service provider and 3 machine shops serving various industries, including the automotive and medical sectors. Data were collected through semistructured interviews, member checking, and analysis of company documents that provided information about the adoption of 3DP into business models. Using Yin’s 5-step data analysis approach, data were compiled, disassembled, reassembled, interpreted, and concluded until 3 major themes emerged: identify business opportunities for AM technology, experiment with AM technology, and embed AM technology. Because of the design freedom the use of AM enables, in combination with its environmental efficiency, the implications for positive social change include possibilities for increasing local employment, improving the environment, and enhancing healthcare for the prosperity of local and global citizens by providing potential solutions that managers could use to deploy AM technology.
... The concept was originally introduced by Christensen in the 1990s, when he examined the failure of hard disk market leaders in competing with new entrants (Christensen, 1997). He also outlined the idea that emerging technologies can generate a new market, or fundamentally alter an existing one (Nagy, Schuessler and Dubinsky, 2016). ...
... In other words, DI indicates a technology that offers a new set of innovative features, but which are initially underappreciated, compared to existing products (Christensen, 1997). However, although the existing literature agrees that disruptive innovation induces significant market responses (Nagy, Schuessler and Dubinsky, 2016), at what point can a technology be classified as disruptive? ...
Article
Full-text available
The idea of disruptive innovation has garnered considerable attention over the years among both academics and practitioners although a common misunderstanding about its basic principles, as well as the lack of a definitive theory, persists. This research aims to analyse the correlation between the video streaming platform industry and the concept of disruptive innovation. Netflix, which used video streaming to introduce a completely new and disruptive business model, will serve as an example to explore this connection in more details. The presented paper will examine and analyse the existing literature around the concept of disruptive innovation, including contributions, and points of view of several authors, in order to achieve a comprehensive understanding. Aim of the reserach is to analyse Netflix's success adopting the theories presented in the literature review to evaluate whether it can fit into the definition of disruptive innovation.
... For the purpose of this study, a modern understanding of technological innovation has been adopted, referred to as disruptive innovation. It is defined as an 'innovation that changes the performance metrics, or consumer expectations, of a market by providing radically new functionality, discontinuous technical standards, or new forms of ownership' (Nagy, Schuessler, and Dubinsky 2016). ...
Article
This research responds to the needs of the shipping industry seeking optimal processes and mechanisms for successful innovation. The study aims at identifying the key factors underlying successful adoption of technological innovations in sea shipping, broken down into three critical research areas: technology readiness, social acceptance, and technology implementation process. The findings have been obtained using a mix-method approach combining patent analysis, survey analysis, structured interviews, and R&D projects analysis. The results indicate that the maritime transport lags behind other industries in terms of developing and implementing new technologies, and relies on technologies which have been tested and adopted in other market segments. The research has proven that the social groups most affected by the implementation of innovative marine technologies are highly enthusiastic about them. The key success factors include compliance of the innovation with future legal requirements and involvement of maritime carriers or sea transport operators in the implementation process.
... Table 2 shows that OC (p = 0.026) and GM (p = 0.028) both positively and significantly mediate ICT-OP link. As a result, H8 and H9 are all supported, which is consistent with previous studies (e.g., Glaeser, 2016;Nagy et al., 2016). ...
Article
Full-text available
The purpose of this study is to assess how information and communication technology (ICT) adoption influences organizational performance (OP) during the Covid-19 pandemic by highlighting psychometric variables such as employees' organizational commitment (OC), growth mindset (GM), and entrepreneurial orientation (EO). Based on the complementarity theory, we built a theoretical framework where OC, GM, and EO mediate the influence of ICT on OP and tested hypotheses proposed. Responses of 297 employees from agriculture cooperatives in Côte d'Ivoire were obtained on the basis of questionnaires which composed the data for this study. The empirical analysis affirmed the significant and positive effect of ICT adoption on OP, and the significant mediating effect of OC and GM in the relationship between ICT adoption and OP. However, the role of EO in mediating the influence of ICT adoption on OP is insignificant. This research increases understanding of the underlying process of the relationship between ICT adoption and organizational performance during the Covid-19 pandemic.
... Most studies defined disruptive technologies based on its evolutionary process [7,31]. Then many researchers pay attention on the methods to help the managers identify the emergence of disruptive technologies and the associated risks [39,53]. Such as, Bildosola et al. [11] studied the adoption of new emerging technologies while using the case of big data, they considered the way to understand and identify the potential technology. ...
Article
Full-text available
New disruptive technologies invalidate the traditional competition dimension in continuous innovation and reconstruct the competitive landscape. These technologies leave a management gap in the adoption of new technologies by competing companies. Accordingly, this research establishes a duopoly game model based on horizontal and vertical differentiations for technology competition problems with asymmetric features. Competition between firms and technologies are investigated simultaneously. We find that a profit increase from new technologies is typically eliminated by the increased technology competition. Thus, firms with competitive advantages in the old market may be late in adopting new technologies, and the competition will further delay the adoption process. We then introduce a preemption strategy for adopting disruptive technologies, and test it in both current established competition and threat competition from the entrants. Results show that leading companies may hesitate in deterring new entrants for fear of losing the leadership in the current competition. At last, we provide a time strategy that can help the market leader maintain a leadership position with minimal losses. Our research has contributed to the studies of both the interpretation of the “innovator's dilemma” and the direction of technology adoption research under multi-dimensional technologies and multiple competitors.
... Nagy, D., Schuessler, J., Dubinsky, A., (2016),, Defining and identifying disruptive innovations. Ind. Mark. ...
Thesis
Full-text available
The question around disruptive innovation term has been in trend topic for a long time. However, its fame arisen with the global pandemic the COVID19 emergence. The main point of this paper is to analyze the pandemic phenomenon as an external shock to disruptive innovations. The paper summarizes the most famous and important definitions of disruptive innovations, investigates the external effect of their emergence in the market, mostly focusing on the COVID19 pandemic, and finally discussing two real-life examples from the market and their suitability to disruptive innovations’ broadly accepted definitions. As a result, the disruptiveness of TikTok case was proved, however, in the case of Cryptocurrency, the analysis dragged a conclusion to further observe this volatile market.
... Tourism industries have increasingly paid attention to the digital opportunities associated with the Fourth Industrial Revolution (4IR) (Buhalis, 2020;Stankov & Gretzel, 2020). Although contested (see Nagy et al., 2016), one of the ways to succinctly contextualise this phenomenon is by revisiting the three earlier revolutions. The 1st utilised steam power to mechanise production, the 2nd used electric power to create mass production, the 3rd relied on electronics and information technology to automate production, and building on the 3rd ; the 4IR, also known as Industry 4.0, is about disruptive technologies that are blurring the lines between the physical, digital, and biological spheres (see Schwab, 2017). ...
Article
Full-text available
Disruptive potential associated with the Fourth Industrial Revolution (4IR) has received significant attention in the context of the tourism sector. However, although the inability of tourism enterprises to harness the 4IR can adversely impact tourism enterprises, it remains an underexplored topic in emerging economies. This research note responds to this gap and compares the 4IR readiness of tourism enterprises in two different Indonesian destinations: Bali and Labuan Bajo. The findings indicate that the extent of the digital divide between the two locations, in terms of access to digital infrastructure and perceived potential benefits associated with the 4IR, needs urgent policy attention in the context of post-COVID recovery.
... The first is the quantitative method based on the calculation of objective indicators, with diversified value-taking schemes for most of the objective quantitative indicators (Lee et al., 2018). The second is the qualitative method based on the evaluation of subjective indicators, most of which are subjective evaluation indicators relying on professionals to make qualitative evaluations in a specific technological field (Nagy et al., 2016;Collins et al., 2011;Janke and Magdalena, 2015). The third combines the qualitative and quantitative methods, inviting experts to score the subjective evaluation indicators and summarizing the final scores by statistical weighting calculation (Sun et al., 2017). ...
Article
Full-text available
Identifying disruptive technologies has important value for the decision-making in technology layout and investment. The identification methods of disruptive technologies based on data mining have attracted much attention recently, but most of the existing studies use single data for the identification, that may cause bias. Therefore, this paper uses multi-source data which represent the “science-technology-industry-market” chain to identify disruptive technologies. In addition, this paper improves the two steps, generating candidate technology list and evaluating disruptive potential, in the general process of identifying disruptive technologies separately and develops two new methods. One method is to obtain the list of potential disruptive technologies from experts and then evaluate the technology disruptive potential by using a multi-dimensional index system. The case study of this method is carried out in life science field, and four types of data (papers, patents, data of start-ups and public opinion) are used to evaluate thepotential disruptive technologies. Another method is to generate the list of potential disruptive technologies by mining multi-source data and then evaluate the technology disruptive potential by experts. The case study of this method is carried out in energy technology filed and life science, and three types of data (papers, patents and projects) are used for mining to generate the candidate technologies list. The effectiveness of the two methods using multi-source data is verified by comparing the results with the list of technologies given by experts in advance.
... Nagy et al. (2016, p. 122) defined disruptive innovation as "an innovation that changes the performance metrics, or consumer expectations, of a market by providing radically new functionality, discontinuous technical standards, or new forms of ownership". Nagy et al. (2016) observed that such disruption involves specific innovation features that are likely to disturb the existing industries or businesses. By implication, a disruptive strategy includes a new strategy, as a result of external influence, that disrupts the industry or firm's existing business plan or strategy, but can potentially give a way of complying with the external directives, primarily to survive and stay in operation. ...
Article
Full-text available
Purpose This study aims to explore how the implementation of the recapitalisation by the Bank of Ghana disrupted the indigenous banks’ sources of accessing capital to raise the required amount within the mandatory stipulated time/deadline. Design/methodology/approach This study used purposive sampling techniques to interview key role players and senior members involved in the bank’s recapitalisation process and/or have in-depth information on the 2017–2018 recapitalisation period. Findings This study revealed that government directives significantly shape banks regulations and strategy; accordingly, any state-directed policies must be communicated cautiously, well explained and implemented to reduce any negative consequences. Originality/value This study makes a significant contribution to knowledge by exploring how directives (arbitrary) of regulatory bodies can influence the business as well as its other stakeholders (such as the depositors, public, among others). Secondly, the study highlights how the delays in government support may not derive the benefits expected by the regulator.
... Traditionally, servitization is recognized as a multifaceted (Kowalkowski, Kindström, Alejandro, Brege and Biggemann 2012), incremental and emergent process (Palo, Åkesson and Löfberg 2019). However, digitalization is dramatically changing how firms operate and create value in ways that are fast-paced and potentially disruptive (Nagy, Schuessler and Dubinsky 2016;Simmons, Palmer and Truong 2013). As a consequence, the disruption is fundamentally altering business models, challenging industry boundaries, and organizational identities (Ng and Wakenshaw 2017;Svahn, Mathiassen and Lindgren 2017;Tronvoll et al. 2020a). ...
... Today, there is agreement among researchers that Agriculture 4.0 technologies have a radical and disruptive quality (Klerkx, 2020;Klerkx & Rose, 2020;Krishnan et al., 2020;Rijswijk et al., 2019;Walter et al., 2017) which changes the work motifs, structures and institutional arrangements in the agri-food nexus, thus entailing different types of risk for adopters and non-adopters (Charatsari et al., 2020). Nagy et al. (2016) argue that a disruptive innovation changes the performance metrics of a sector by its radical functionality, which refers to its ability to provide adopters with the capacity to perform tasks that were impossible before innovation's inversion; its technical standards that do not directly continue previous technologies (referred to as 'discontinuous technical standards') or its novel form of ownership. Indeed, Agriculture 4.0 technologies carry such attributes (each at a different level of intensity). ...
Article
This research aimed to identify the practices used by actors while innovating digitally in the field of agriculture. We also attempted to depict if and how they experience disruptions associated with the emergence of digital technologies. A qualitative research design permitted us to uncover that work-related and system-related disruptions follow the process of agricultural digitalisation. The study also indicated that innovating digitally is a collective process in which, however, some actors independently attempt to elevate their positions through weaving, that is, engaging in networking practices. On the other hand, despite their intense efforts to promote these technologies to farmers, innovation brokers, technology providers, and researchers are not actively involved in the process of co-creating value for and with farmers. We conclude by arguing that digital technologies are not scope-neutral devices and by pointing out the need for redefining what responsibility means, what agricultural digitalisation research should stand upon, and what it should stand for. This article is protected by copyright. All rights reserved
... Still, overall, the 3DP spare parts production cost seems to be the primary concern of the 3DP adoption (Wohlers Associates, 2021); we thus consider that production cost a critical parameter in our model. Further still, the different manufacturing technology selection will elicit different reactions from the supply chain intermediaries based on the product competition (Baumers & Holweg, 2019;Dubey, Gunasekaran, Childe, Papadopoulos and Helo, 2019;Nagy, Schuessler and Dubinsky, 2016;Srivastava, 2007). In addition, there has been limited research that has assessed the impact of 3DP adoption at the supply chain level. ...
Article
3-Dimensional Printing (3DP) has been widely used in the circular supply chain. Still, most of the literature focused on addressing only the manufacturer's adoption of 3DP and how it influences the supply chain. A growing number of non-manufacturer (e.g., logistic suppliers) have adopted 3DP, but its impact on manufacturers and customers is still underexplored. This paper uses a two-player single-period supply chain model, supported by an in-depth interview, to investigate how the logistics supplier's 3DP adoption impacts the circular supply chain in the spare parts aftersales market. The findings show that cost reduction of 3DP does not always benefit the logistics supplier. Still, this finding opens a new revenue stream for the logistics supplier and the integrated supply chain. Further, the manufacturer can financially benefit from such adoption only when the cost of 3DP production is relatively high. Interestingly, the logistics supplier can use 3DP adoption as a game-changer to become a new "green manufacturer", thereby posing a strategic threat that can influence the traditional manufacturer's decisions regarding financial benefits. Customers can also enjoy more surplus when logistics suppliers adopt low-cost 3DP. This study is one of the first to investigate how non-manufacturer 3DP adoption impacts the circular supply chain.
... After more than 20 years since the concept of disruptive innovation appeared, the current vision suggested by authors such as Kumaraswamy et al. (2018) and Nagy et al. (2016) started to include technologies that are already born capable of generating new businesses and revolutionizing entire markets, not focusing exclusively on emerging markets. There is an increasing concern for organizations to present competitive products that can remain leaders in the market. ...
Article
The entrepreneurs responsible for establishing university spinoffs are incessantly looking for new ways to leverage existing technology or create an entirely new product or service market. The creation of disruptive innovative solutions has assumed a key role in enhancing the role of university spinoffs in the global marketplace. This study aims to characterize and explore the phenomenon of disruptive innovation in university spinoffs and identify how university spinoffs recognize and evaluate low-end and new-market disruptive technologies. The findings reveal that university spin-offs have essentially privileged new-market disruptive technologies. Participation in trade fairs, conferences and journals have been the main methods adopted by these organizations to identify disruptive technologies, while the evaluation of the potential of these disruptive technologies is essentially based on the experience and scientific knowledge of the founders of the university spin-offs. Furthermore, the size and number of years of activity of university spinoffs are two factors that allow us to understand the greater proximity of the younger and smaller spinoffs with universities and research centers, whereas the larger organizations prioritize mainly market analysis and product research techniques.
... The app assumes a disruptive potential of creating a new market in the urban agriculture field different from what is offered by traditional production models without the support of technology. According to Nagy et al. (2016), a disruptive solution is usually simpler and cheaper than what already exists in the market. Another characteristic of this app is that it aims to focus on a target audience with little knowledge of agriculture, but who want to take their first steps in this field. ...
Chapter
The implementation of urban gardens, which are increasingly appearing in cities, aims to respond actively to the growing demand for urban spaces for the installation of urban gardens, creating conditions for the practice of sustainable agriculture in an urban context. Through these initiatives, it is intended to ensure that the needs of the population are met and to maximize the benefits arising from the practice of urban agriculture, both for the environment and for people's quality of life. Technology is a facilitating element in the process of acquiring and maintaining these urban gardens. This chapter presents an app that can be used by farmers to manage the production of consumer goods in this space, providing information about the status of crops, products to be grown, and types of required maintenance. This app simplifies the production process and also increases the sustainability of agriculture activities considering the economic, social, and logistical dimensions.
... Nevertheless, customers in urban locations said that they could trust agent banking if they were always in touch with legitimate banking officials. Besides the TAM theory used to predict the acceptance of new technology, the disruptive innovation theory (DIT) proposed by [25] also revealed that innovation has a tremendous impact on developing economies [26]. It also indicates that innovations change the performance values, customers' expectations, and rapidly implements new functionality. ...
Article
Full-text available
Branchless banking is a new digitalization of artificial intelligence (AI) for future banking services. The rapid digitalization and technological advancement of financial institutions (FI) have changed due to the COVID-19 pandemic. Such branchless banks are expected to offer financial customers meaningful access whilst promoting responsible usage of suitable and affordable financial solutions. The objectives of this paper are to identify CSF to conduct branchless banking for bank performance during the attack of the COVID-19 pandemic in Malaysia. These CSFs are important to reinforce the new business model recommended by the central bank of Malaysia (BNM). Through this study five CSFs have been identified which are customers do not physically attend to the bank for their banking needs, it is more efficient, saves time, secured, and low cost. As the industrial revolution (IR) 4.0 approaches, public acceptance, innovation, and strong financial services, as well as demand of digital payment will take over the country. National savings bank (BSN) was officially the first bank in Malaysia to conduct branchless banking through agent banking. In line with the BNM division strategy 2011-2020, BSN had launched banking beyond branches via BSN agents who offer banking services on behalf of BSN.
... [A] [B] Dan and Chieh [46] These are technologies that have a disruptive effect on the market due to technological advances. Nagy [47] Disruptive technology provides new functions, discontinuous new technical standards, and new forms of ownership technology and can change market standards and consumer expectations. [A][B] Bai et al. [48] Disruptive technology is the one that changes the established technology paradigm and will have a disruptive effect on the traditional mainstream technology track, industry market structure and even international competition rules. ...
Article
The definition of ‘transformative innovation’ is still ambiguous, making it difficult to develop more targeted strategies for steering scientific and technological innovation. In this study, taking extant academic publications as our research object, we used topic extraction and visualisation tools to explore the intersections and differences among transformative and other innovative concepts. The correlation degrees among the concepts related to ‘transformative innovation’ were used to distinguish the relationships among concepts related to ‘breakthrough innovation’ and ‘disruptive innovation’. We further analysed the definitional differences among ‘transformative innovation’, ‘emerging technology’ and ‘groundbreaking research’. The results showed that the concepts of ‘breakthrough innovation’ and ‘disruptive innovation’ can be integrated into the scope of ‘transformative innovation’. However, the definitions of ‘transformative innovation’, ‘emerging technology’ and ‘research frontier’ had their distinct characteristics. ‘Transformative innovation’ focused on major impactful technological changes. ‘Emerging technology’ focused on novel technology and its promoting. ‘Research frontier’ focused on research activities taking place at the frontiers of knowledge. Therefore, distinctive science and technology (S&T) policies are needed for the different types of innovation. This article introduces a novel multidimensional method to place the different concepts associated with ‘transformative innovation’ into a unified framework. This framework is expected to support policymakers in their S&T policymaking, and it would aid the work of S&T researchers.
... Several businesses collapsed owing to a lack of creativity. Yahoo, Kodak, and Nokia lacked the potential to develop and compete with newer businesses like Google, Canon, and Apple, for instance (Müller et al., 2018;Nagy et al., 2016;Stalk, 1992). Can innovation provide companies with a competitive advantage? ...
Article
Full-text available
As a foundation for long-term competitive advantage and significant economic growth, businesses rely greatly on innovation in the present day. Innovation influences the growth and survival of businesses in competitive markets. A comprehensive review was conducted on more than 40 out of 213 publications in innovation, competitiveness, and technology that were chosen based on their topical relevance and publication date ('most recent'). This article tries to determine how organizations can pursue better strategies and ways to make better judgments to compete with their rivals and whether innovation is essential for a company's competitive advantage when technological advancements are growing faster than ever before. According to the findings, innovation is a crucial component of competitiveness. Nonetheless, it should be accompanied by a well-defined and stated plan that aligns with the current business model and the varying technical skills of all the company's employees. If enterprises fail to achieve this requirement, there is a low likelihood that they will survive in a market. According to the collected results, organizations should consider these findings when formulating their policies, as they will affect their strategic position in the market in which they operate and their competitive advantage over other competitors.
... O caráter disruptivo da inovação se apresenta quando uma empresa, com recursos limitados, é capaz de desafiar com sucesso empresas tradicionais e estabelecidas no mercado ao introduzir um novo produto e/ou serviço que, inicialmente apresenta um desempenho inferior em relação ao seu concorrente, mas promove uma mudança significativa no hábito e/ou comportamento de seus consumidores (Christensen & Bower, 1996;Christensen, 1997). Ao provocar essa mudança no mercado (Nagy, Schuessler & Dubinsky, 2016), as inovações disruptivas causam turbulências e desarranjos que tendem a atrapalhar a indústria e as relações do ecossistema em que estão inseridas. ...
Article
Full-text available
O objetivo desse trabalho é responder como está configurada a estrutura intelectual que vincula a inovação disruptiva digital às capacidades dinâmicas? Em virtude disso, o objetivo é identificar a estrutura e os vínculos intelectuais no campo conceitual a partir da análise de artigos científicos publicados no período de 1995 a 2019 em periódicos indexados à base de dados Web of Science (WoS). O método utilizado foi o bibliométrico com o apoio dos software VOSviewer. A partir dos resultados obtidos, é possível compreender a arquitetura do campo conceitual e as redes relacionais que trata das inovações disruptivas digitais vinculadas à capacidade dinâmica. Os resultados são indicativos que o campo que trata as inovações disruptivas ainda está emergindo e as relações apontadas tendem a se fortalecer e se estruturar o que aumenta a possibilidade para que estudos futuros sejam direcionados em diversas frentes.
... First, our results suggest that the transition of the meat production system has an impact on jobs in the first stage of conventional production, especially on animal farmers. The perceived difficulty of people currently working in livestock production to move into other areas of the new alt-protein systems may be related to the disruptive nature of these innovations (Gerhardt et al., 2020;Rischer et al., 2020;Reis et al., 2021), where the skills and abilities required to work in an industry become obsolete with the advent of novel materials and production processes (Perez, 2010;Nagy et al., 2016). These findings are also linked to studies highlighting that the greatest pressure on the conventional meat chain in the face of food production transition will be on animal farmers, crop-growing farmers, and the rural community at large (Chriki and Hocquette, 2020;Tubb and Sena, 2020;Helliwell and Burton, 2021), who may suffer income losses and job losses as a result of the transition to more urban meat production (Rubio et al., 2020;Moritz et al., 2022). ...
Article
Full-text available
Cultivated and plant-based meats are substitutes for conventional animal meat products. As radical innovations, they may trigger profound social and economic changes. Despite the many benefits of alternative meats, such as environmental sustainability, animal welfare, human health and food safety, some unintended consequences remain unexplored in the literature. In this paper, we studied the potential impact of the meat production system transition on jobs. Using a survey, we compared opinions regarding the impact on jobs in Brazil, the United States and Europe, according to alternative protein experts. Our results showed the potential of plant-based and cultivated meat production to create new and higher-skilled jobs. The data analysis also suggested that the impact of novel food production systems on jobs in conventional meat production may be different for each stage of the value chain. In particular, the results showed a pressure point on animal farmers, who may be most affected in a fast transition scenario. Considering the studied geographical contexts, Brazilian professionals were more optimistic about the potential of plant-based and cultivated meat production to create new jobs. Our findings may provide new insights for the development of policies, measures and strategies that promote job creation, skills and income in view of the ongoing transition.
... Disruptive innovation was first used by Christensen (1997) in his book titled The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Since its introduction, disruptive innovation theory has been studied in great detail, contributing to an exponential growth in the innovation management literature (Christensen, 2006;Govindarajan & Kopalle, 2006;Nagy et al., 2016). Disruptive innovation is an innovation activity that counterattacks the mainstream market trend based on disruptive technology and service and business model innovation. ...
Article
Disruptive innovation is an effective way for market latecomers to draw a level with earlier developers. Yet, little is known about how a path of disruptive innovation for semiconductor latecomers can be cultivated. We aim to fill this gap in knowledge with the help of the experience of China’s local fabless semiconductor firm, HiSilicon, by using a single case qualitative method for vertical research. The results show that the ‘five-steps-in-one’ S-M-A-R-T framework is an effective path for semiconductor latecomers to cultivate disruptive innovation of the dynamic process. It can help existing semiconductor latecomers to break through their lagging dilemma. Among them, strategic direction (S) is a guideline, market identification (M) is a prerequisite, ability building (A) is a foundation, R&D for independent technology (R) is a key, and timing of market entry (T) is a safeguard. Our case study ‘HiSilicon’ happened to be in this situation; it took 15 years to counterattack from a niche market to the mainstream market, and finally accomplished disruptive innovation. Our findings contribute to enriching and expanding the guidance for semiconductor latecomers in different countries by identifying how to foster their disruptive innovation to catch up successfully.
... In the year 2030, more than 14% of the workforce is at high risk of replacing by automation, and another 30% changes in skills used in the workforce. Many countries worldwide have struggled to create young and workingclass people with high enough work and life skills for disruptive technology [1][2][3][4][5][6][7]. Linked to changes in work and employment, Disruptive Technology is a term that describes the large-scale changes that have occurred from modern technology of robotics and automation [8]. ...
Article
An article presents policies for Thailand's workforce development under the context of the 4th Industrial Revolution. It will be helpful for executives to design policies to improve the country's workforce. Within context, the changes from the impact of the Industrial Revolution were due to the influence of Disruptive Technology. The paper explores directions, trends, impacts, and policies for managing labor issues in the Disruptive Technologies era. Studying the opinions of 26 CEOs and executives of businesses in Thailand(2019-2020) used or affected by the Industrial Revolution, obstacles, feedback, focusing on issues, concepts about Disruptive Technologies, and vocational education concepts. They are using qualitative research methodology and procedures to support policy. The study results are the impact of Industrial Revolution on Thai workers and technological TVET Institution to develop Thai people during Industrial Revolution, educational management to develop Thai people in the Thailand 4.0 Therefore focuses on increasing labor skills and educating to create new skill / Upskill /Reskill for workers under reality. The policy document also outlines recommendations from the public and private executives. The CEOs have advised on the issue of developing the skills and performance of the workforce in the future. The changes in the skills of older workers and summary provide policy recommendations to educational institutions and governments.
Article
The heuristic versatility of foresight is increasingly positioning this anticipatory instrument as a key resource to promote more responsible research and innovation practices. In a context where foresight’s multiple heuristic potential is sometimes wrapped up in a promissory rhetoric that could lead to its being taken for granted, this article underlines the need to understand the emergence of these heuristics as being dependent on how foresight’s dynamics unfold. By acknowledging the existence of more “open” or “closed” forms of foresight (which in turn can articulate more “open” or “closed” anticipations), the article argues that the degree of “openness/closure” of foresight activities is constituted during the ex-ante, ex-dure and ex-post processes, and according to the relations underlying their constructive dynamics. The main conclusion reached is that a pre-condition for foresight practices to become “instruments for” responsible innovation is to make them “subjects of” responsibility simultaneously. This involves monitoring the socio-epistemic relations whereby foresight practices are designed and executed, as well as monitoring how their emergent heuristics are translated into action.
Article
Purpose The purpose of this paper is to investigate enhancement of library performance by exploiting the potentials of disruptive innovations. Design/methodology/approach Descriptive survey research design was used for this study. The population of the study was 167 respondents, consisting of 83 professional and 84 para-professional librarians in the libraries of the public higher institutions in Ekiti and Ondo States, Nigeria. Total enumeration sampling technique was used for the study. Data were collected using the questionnaire. Descriptive statistical tools were used for data analysis. Findings It was found that disruptive innovation has influence on library operations, the extent of application of disruptive innovation in library operation is low, the extent of using the by-products of disruptive innovation in the libraries is low and the challenges facing the adoption of disruptive innovations in libraries include: high cost of acquiring technological infrastructure, high cost of training library personnel, high costs of internet, inadequate technical know-how and high costs of system maintenance and upgrades. Practical implications Libraries should embrace the influence of disruptive innovations in their operations and service delivery. Originality/value This study is novel, as it approaches library performance from the perspective of the disruptive innovation. Very few studies emanate from Africa in this area. Most of the previous narratives around disruptive innovation centred around the Western countries such USA, UK, France, Italy, etc., which maintain a lead in library innovation and development. The current study demonstrated that the performance of libraries in Nigeria is not immune from being boosted by disruptive innovations.
Article
Managing risk is an important aspect of owner-managers’ decision-making; however, the impact of major environmental market disruptions remains largely under-researched. Underpinned by an effectuation lens, this study examines decision-making associated with the ‘concentration versus spreading debate’ (focusing on a single or limited number of product-market strategies rather than diversifying across a variety of product-markets). The context features post natural-disaster recovery strategies following a high magnitude earthquake that immediately ended firms’ sales within their local proximity. The study employs a longitudinal qualitative research design involving 16 smaller-sized wine producers in the Canterbury/Waipara Valley cluster of New Zealand, illustrating different degrees of strategic flexibility among owner-managers. Unique insights offer varying ‘how and why’ perspectives into decision-making regarding the extent to which product-market strategies differed across core and augmented product portfolios and geographic markets prior to and following the disruption caused by the unanticipated natural disaster.
Article
Many new water technologies are referred to as being disruptive. The term disruptive innovation is overused to the point that it has lost much of its meaning. There is no clear framework to quantify or measure the impact of new water technologies. This paper proposes a series of different metrics as an objective means to quantify the market impact of technologies based on empirical data, and assesses their practicality in application. Three different levels of market impact are defined, the lowest being Level 3 and the highest Level 1. Selected metrics are applied to empirical data for 11 different water technologies to test the framework. It was found that the average time required to reach Level 1 impact, from the first installation, was 21 years, while it was possible to move from Level 2 to Level 1 in 10 years. The presence of two to three competitors in the market has a synergistic effect and can accelerate overall adoption of a technology class. The fragmented nature of the water sector has been observed to act as a buffer against disruption. The metrics, which have been found to be useful in evaluating the impact of water technologies, are the total number countries in which the technology is adopted, the total number of units that have been deployed and the annual market value the technology achieved. It has also been observed that certain innovation typologies and innovation drivers are associated with high levels of market impact while other combinations are associated with zombie technologies.
Article
This study illuminates the linkages between disruptive innovation (DI) and sustainable entrepreneurship (SE) within the context of small and medium firms (SMFs). By adopting a systematic review of the literature, we thematized the possible connections between DI and SE practices to include: (i) contextualization of DI in Nigeria’s entrepreneurship ecosystem; (ii) a model for linking DI and SE among firms in Nigeria; and (iii) mechanisms and structures that achieve DI and SE. The study elaborates on theoretical and practical implications for the SMFs stakeholders. Among the viable arguments of this research is that disruptive efforts should align with financial expectations and social value, and other expected returns for the customers. Our study extends the theoretical frontiers of the DI literature by demonstrating the interconnectedness of the DI model for SE in a developing economy, specifically Nigerian SMFs, which is seeking a transition from heavy reliance on oil exploration to a much more widespread economic base that taps other natural resources and diverse economic contributors.
Article
Purpose There are uncertainties concerning how innovators can successfully venture into disruptive innovations and how incumbents can react to the emergence of such innovations. Disruptive digital innovations, which use information technology to disrupt business contexts and can evolve rapidly to either successes or failures, have unique challenges. The literature has largely remained silent concerning these. Also, existing studies often focus on innovations originating in developed economies and just on successful cases. There is a lack of comparative focus on successful and failure cases emerging across economies. The purpose of this paper is to fill these gaps. Design/methodology/approach This paper assesses the evolution of disruptive digital innovations in various contexts through a financial management-motivated conceptual framework. Contrary to existing works, this paper focuses on both successful and failure cases and regards the influence of various stakeholders further to innovators and incumbents to explain the successes or failures of the innovation. Findings There are some common success factors for disruptive digital innovation. These include an inherent focus on social value, alignment to financiers' interests and rivals' actions and strategic collaborations to create a synergy effect. Research limitations/implications Innovators can cause effective digital disruption by focusing on social and financial values. Success can also largely depend on strategic partnerships rather than actions by an individual entity. Thus, venturing and managing disruptive digital innovation is not an isolated but a social process. Originality/value This paper recommends propositions for innovators and incumbents to venture into and confront disruptive digital innovations effectively. Its originality lies in focusing on both successful and failure cases, unexplored in literature, to develop the propositions.
Article
Purpose Based on the literature on disruptive innovation, this research explores how disruptive innovation directly and indirectly (via innovation speed and innovation quality) influences firm performance in relation to the contingency of market-supporting institutions. Design/methodology/approach A sample of 207 firms was gathered through questionnaires targeting senior managers and R&D managers from high-tech firms in China with two waves including explanatory variables and outcome variables. Findings This empirical results indicate that disruptive innovation positively affects firm performance, and that innovation speed and innovation quality mediate the relationship between disruptive innovation and firm performance. Meanwhile, market-supporting institutions positively moderate the relationship between innovation speed and firm performance, but negatively moderate the relationship between innovation quality and firm performance. Research limitations/implications This study suggests that disruptive innovation is important to firm performance, innovation speed and innovation quality play mediating roles, and market-supporting institutions acts as moderating effects. A research limitation is that the data were collected mainly through a questionnaire. Practical implications Firms should incorporate disruptive innovation as an important strategy and improve innovation speed and innovation quality to promote firm performance, and policymakers should improve the levels of market-supporting institutions to facilitate innovation and performance. Originality/value This study contributes the literature of disruptive innovation by uncovering the positive effect of disruptive innovation and firm performance and the mediating effects of innovation speed and innovation quality on the abovementioned relationship, and revealing their contingency effects of market-supporting institutions.
Article
Disruptive technology has profoundly affected the market environment and business patterns. Traditional and emerging industries are willing to adopt it to nurture their innovation activities and achieve competitive advantage. However, traditional technological innovation theory cannot give accurate guidance because of the peculiarities of disruptive technology. Thus, in this study, we explore the diffusion mechanism of radio-frequency identification (RFID) technological innovation from the perspective of disruptive innovation. We implement maximum likelihood fitting methods and the goodness-of-fit test to analyse the network’s degree distribution characteristics through evolution. Results illustrate that the connection mechanism changes through the evolution process. In particular periods, preferential attachment does not work. Dominant technologies will lose their position with the emergence of disruptive technologies, hence replaced by them. The findings will provide practical suggestions to firms in facilitating their strategic decision-making when faced with disruptive technologies.
Article
Product innovation is often a process for improving existing products. Low-end disruptive innovation (LDI) enables a product to meet the most price-sensitive customers in the low-end market. The existing LDI methods are mainly based on unnecessary characteristics of disruptive innovations. Thus, they cannot easily identify and respond to the LDI design needs. This study proposes a hybrid method for the product LDI in two levels of the product design based on the summarized definition and essential characteristics of LDI. Feasible areas of the product LDI are determined using a hybrid relational function model to identify the maturity of dominant technologies. The technologies are identified through the technical search and evaluation of the feasible area for innovation to form an initial LDI scheme. Then, the product function is optimized using the trimming concept of theory of inventive problem solving based on the characteristics of LDI. The final LDI scheme is formed and evaluated based on the essential characteristics of the product LDI. The feasibility of the proposed method is verified in the design of a new dropping pill machine.
Article
Purpose The purpose of this study is to ascertain the drivers of digital disruption and its consequences from a managerial viewpoint. Understanding the drivers and consequences of digital disruption can help business managers modify and align their organizational structures and strategies with digital disruptors to promote survival in the marketplace. Design/methodology/approach This study used survey data from US managers. Of 1,000 managers, 272 provided responses eligible for use in the analysis. The study used EQS 6.2 software to analyze the data. Findings Eight hypothesized relationships were tested in this study. The results of this study indicate that convergence of intelligence, convergence of technology, support from C-level executives, organizational cultures of innovation and managerial skills act as drivers of digital disruption. The results also show that digital disruption improves both user experience and firms’ digital disruptive performance. Originality/value This study builds upon the disruptive innovation theory. This study demonstrates that both technology- and organization-induced drivers serve as predictors of digital disruption. Digital disruption affects user experience and firms’ digital disruptive performance. In addition, user experience influences firms’ digital disruptive performance. Overall, this study improves our understanding of the role of technology- and organization-induced drivers of businesses’ responses to digital disruption and provides contributions to theory and practice.
Conference Paper
This article examines the support from the disruptive innovation literature in recognizing potentially disruptive innovations. A literature review was carried out resulting in eleven articles containing frameworks for evaluating disruptive innovation. Potentially disruptive innovations are by their nature hard to deal with. Being able to recognize them is a first step in dealing with them, but recent disruptive innovation literature describes the field as fragmented and misunderstood. The overview presented in this article can be used as a guide by academics and practitioners that intend to approach the field. Among the frameworks three types were observed: frameworks for classifying into disruptive or not, frameworks for classifying into types of disruption, and frameworks assessing disruptive potential. A comparison is made within and between framework types to illustrate similarities and differences between how they characterize types of disruption and which factors they consider for evaluating disruptive potential. The frameworks are applied to the IoT innovation of usage-based auto insurance. It was previously the subject of a case study, showing disruptive potential as a part of the digital transformation of insurance companies. Then the frameworks are evaluated based on the learnings from the case study.
Article
Full-text available
The purpose of this qualitative multiple-case study was to explore strategies that companies in the Netherlands and Belgium used to adopt additive manufacturing into their business models. This research provided the positioning of additive manufacturing technology, including the manufacturing perspective on business models, frameworks of adoption, and strategies for implementation. A multiple-case study was conducted at manufacturing firms in two countries from various industries that adopted 3D printing. Data were collected using desk research, questionnaires, semi-structured interviews, member checking, and company documents, which provided insights into how adopting additive manufacturing technology was adopted and impacted their business models. Christensen’s Theory of Disruptive Innovation was applied as a conceptual framework. The findings of this study help companies to integrate additive manufacturing technology into their business models. Additionally, this study may assist in harnessing the full potential of 3D printing by thinking beyond prototyping and understanding how this technology can benefit their business and what it means for production.
Article
The research aims to explore and compare the framing of the disruptive innovation phenomenon by the business media and the academic literature. For this purpose, 1160 news articles available on the Factiva database and 228 academic papers published in the Web of Science in the last 20 years were content analysed through an automated text-mining method. The results revealed that the representation of the disruptive innovation phenomenon in the news media diverges with the academic discourse despite the common vocabulary. While researchers describe disruptive innovation as a process/business model involving an improved performance, the media has not yet evolved from the technology-based perspective. Also, the media tends to focus on the features of the disruptive products and services but fails to discuss their value to the market. The framing of the social side of disruptive innovation also differs. The study offers three contributions: (i) it reveals the main concepts representing the term ‘disruptive innovation’ in the media and scholar discourse, (ii) it suggests future academic research avenues based on media interest and (iii) it emphasises media coverage gaps stemming from its failure to communicate the advances in the academic research on disruptive innovation.
Article
Digital disruptions are substantially impacting businesses and reshaping our economy worldwide, attracting increasing attention in research and practice. However, research lacks theoretical framing and understanding of the emergence, development, and impact of digital disruption. This study analyses and structures the fragmented knowledge on digital disruption by means of a systematic literature review, identifying five relevant key dimensions, i.e., disruption characteristics, market factors, organisational factors, value constellation, and impact/outcomes. Based on this analysis and classic disruption theory, we develop a theory-informed integrative framework, proposing nine relevant layers of digital disruption and deriving corresponding theoretical propositions for future research. The study makes an initial contribution towards theory development and a comprehensive understanding of the digital disruption concept. It may serve as the starting point for further theory development and a guiding scheme for managers on how to create or deal with digital disruption.
Article
In recent years, pandemics have become one of the most significant challenges due to their huge socio-economic impacts. Fortunately, smart technologies have provided new ideas to fight against them. Many studies have focused on analyzing particular technologies applied in pandemics, but few have systematically discussed the difference and the relationship among multiple perspectives. China is well represented in the development of technologies and pandemic responses. Therefore, this paper uses China’s response to COVID-19 as an empirical study to systematically review the application of smart technologies and build a case base from multiple perspectives. A total of 1,102 cases from 14 technologies were collected from January 2020 to June 2020 after screening, and a series of analyses were conducted in terms of types, scales, stages, and targets. The result shows various subjects participated in pandemic responses using smart technologies. General technologies such as Big Data and Mobile Internet are most widely used. Besides, most technologies are used on the country or district/city scales and focus on the prevention and control of pandemics. There are significant differences in the penetration of technologies among different perspectives. We hope to provide a reference for applying smart technologies against pandemics in the future.
Article
Full-text available
The purpose of the study was to assess the influence of marketing innovation on the performance of coffee cooperatives in Kenya. A descriptive research design was applied. The target population of this study was 525 coffee cooperative societies in Kenya registered with the Commissioner for Cooperatives and licensed by AFFA (Coffee Directorate) as of 30th of October 2016. The sample size was 227 respondents. Structured questionnaires were used to collect primary data from the selected respondents. The results revealed that marketing innovation and performance are positive and significantly related (?=0.674, p=0.001). This implied that significant changes in product design and packaging led to a positive change in the performance of coffee cooperatives. The study affirms that to improve performance by targeting the customers, constant improvements in how the company promotes its new products to capture the attention of new customers is a key aspect to be considered. The study recommends the management employ skills in developing clear operating procedures to run the business successfully, coordinate different areas of the business to achieve results and the ability and design jobs to suit staff capabilities and interests.
Chapter
The rapid global spread of the Coronavirus 2 (SARS-CoV-2) commencing February 2020 ushered in remote working as a means to stem the virus's spread and continue production. However, not all jobs can be remotely performed, as evidenced in Latin America and the Caribbean, where only 20% of available jobs can be executed remotely. Many managers across Latin America and the Caribbean have no experience with managing remote workforces. Several issues exacerbated the challenges these inexperienced and unprepared managers faced, including the lack of training and the unavailability of internet and communication technologies, especially critical disruptive innovations such as broadband internet. The lack of broadband internet and training on using information and communication technologies hinders diversity and inclusion, as many managers and the workforce at large from Latin America and the Caribbean region could not make contributions to global and national production, which negatively affected the quality of their lives.
Article
Full-text available
An evolutionary model of technological change is proposed in which a technological breakthrough, or discontinuity, initiates an era of intense technical variation and selection, culminating in a single dominant design. This era of ferment is followed by a period of incremental technical progress, which may be broken by a subsequent technological discontinuity. A longitudinal study of the cement (1888-1980), glass (1893-1980), and minicomputer (1958-1982) industries indicates that when patents are not a significant factor, a technological discontinuity is generally followed by a single standard. Across these diverse product classes, sales always peak after a dominant design emerges. Discontinuities never become dominant designs, and dominant designs lag behind the industry's technical frontier. Both the length of the era of ferment and the type of firm inaugurating a standard are contingent on how the discontinuity affects existing competences. Eras of ferment account for the majority of observed technical progress across these three industries.
Article
Full-text available
Disruptive innovation is a term used to describe innovation that is of highly discontinuous or revolutionary nature, which is the opposite of evolutionary or incremental innovation. The term is becoming more widely recognised, but a consistent view of what disruptive innovation is or how it is defined is missing. This paper explores the different dimensions of disruptive innovation put forward by different authors and proposes a working definition as a key building block for an European Commission (EC) co-sponsored re- search project ("DisruptIT"). The working definition will be used to guide the development of the tools and methods that will help organisations enable and manage disruptive innovation as a key competitive strategy.
Article
Full-text available
A disruptive innovation (i.e., one that dramatically disrupts the current market) is not necessarily a disruptive innovation (as Clayton Christensen defines this term). To aid in understanding why some innovations are more (or less) disruptive to the long-term health of incumbents, this article offers terminology and a framework complementary to Christensen's work, focusing on the diffusion pattern of the new product. The framework and model presented herein suggest that when an innovation diffuses from the low end upward toward the high end, a pattern called low-end encroachment, the incumbent may be tempted to overlook its potential impact. Three possible types of low-end encroachment are illustrated: the fringe-market, detached-market, and immediate scenarios. Conversely, when the pattern is one of high-end encroachment, the impact on the current market is immediate and striking. A three-step framework is identified to assess the potential diffusion pattern and impact of an innovation, thereby helping a firm determine the threat or opportunity that an innovation represents.
Article
Full-text available
This paper focuses on patterns of technological change and on the impact of technological breakthroughs on environmental conditions. Using data from the minicomputer, cement, and airline industries from their births through 1980, we demonstrate that technology evolves through periods of incremental change punctuated by technological break-throughs that either enhance or destroy the competence of firms in an industry. These breakthroughs, or technological discontinuities, significantly increase both environmental uncertainty and munificence. The study shows that while competence-destroying discontinuities are initiated by new firms and are associated with increased environmental turbulence, competence-enhancing discontinuities are initiated by existing firms and are associated with decreased environmental turbulence. These effects decrease over successive discontinuities. Those firms that initiate major technological changes grow more rapidly than other firms.
Article
Full-text available
As an increasing amount of society's wealth is tied up in intangible assets, strong, clear property rights can make a good deal of sense. But it is also possible to have too much of a good thing, and our society is in danger of reaching that point. Recent scholarship suggests as much: a growing body of literature details the expansion of particular doctrines, the rising burden of IP-related transaction costs, or the pressing need for collective *46 institutions to mediate between individual firms and the mushrooming pile of IP rights they must traverse to do business. In this Essay, we approach one part of this problem at the source. We argue that there are limits on Congress's power to create and extend intellectual property interests. Such limits are "internal" in the sense that they are the result of the very same constitutional provision giving rise to Congress's power in the first place, the Copyright and Patent Clause of the Constitution which grants the power "To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." We argue that the language of the Copyright and Patent Clause may restrict some of Congress's more far-reaching efforts at promoting intellectual property in recent years, particularly in passing ad hoc extensions of copyrights and patents for the benefit of individual companies. We then suggest some approaches that courts might take in evaluating, and perhaps striking down, congressional actions in this area.
Article
Full-text available
This paper proposes and empirically tests whether different models are needed to predict the adoption of technical process innovations that contain a high degree of new knowledge (radical innovations) and a low degree of new knowledge (incremental innovations). Results from a sample of 40 footwear manufacturers suggest that extensive knowledge depth (measured by the number of technical specialists) is important for the adoption of both innovation types. Larger firms are likely to have both more technical specialists and to adopt radical innovations. The study did not find associations between the adoption of either innovation type and decentralized decision making, managerial attitudes toward change, and exposure to external information. By implication, managers trying to encourage technical process innovation adoption need not be as concerned about modifying centralization of decision making, managerial attitudes and exposure to external information as would managers trying to encourage other types of innovation adoption, e.g., innovations in social services where these factors have been found to be important. Instead, investment in human capital in the form of technical specialists appears to be a major facilitator of technical process innovation adoption.
Article
Full-text available
Additive fabrication (AF) and rapid prototyping (RP) technologies are mostly associated with applications in the product development and the design process as well as with small batch manufacturing. Due to their relatively high speed and flexibility, however, they have also been employed in various non-manufacturing applications. A field that attracts increasingly more attention by the scientific community is related to the application of AF technologies in medicine and health care. The associated research is focused both on the development of specifically modified or new methods and systems based on AF principles, as well as on the applications of existing systems assisting health care services. In this paper, representative case studies and research efforts from the field of AF medical applications are presented and discussed in detail. The case studies included cover applications like the fabrication of custom implants and scaffolds for rehabilitation, models for pre-operating surgical planning, anatomical models for the mechanical testing and investigation of human bones or of new medical techniques, drug delivery devices fabrication, as well as the development of new AF techniques specifically designed for medical applications.
Article
Full-text available
We develop a valid definition of technological radicalness which states that a successful radical invention is: (1) novel; (2) unique; and (3) has an impact on future technology. The first two criteria allow us to identify potentially radical inventions ex ante market introduction; adding the third condition, we can ex post determine if an invention served as an important change agent. Empirically testable condition selected 6 of 581 tennis racket patents granted between 1971 and 2001. Two of the identified patents – the oversized and the wide-body rackets – are considered radical inventions by industry experts. Applying our definition and operationalization would allow researchers to achieve greater generalizability across studies, avoid endogenous definitions of radicalness, and study predictors of market success for radical inventions.
Article
Full-text available
This paper demonstrates that the traditional categorization of innovation as either incremental or radical is incomplete and potentially misleading and does not account for the sometimes disastrous effects on industry incumbents of seemingly minor improvements in technological products. We examine such innovations more closely and, distinguishing between the components of a product and the ways they are integrated into the system that is the product "architecture," define them as innovations that change the architecture of a product without changing its components. We show that architectural innovations destroy the usefulness of the architectural knowledge of established firms, and that since architectural knowledge tends to become embedded in the structure and information-processing procedures of established organizations, this destruction is difficult for firms to recognize and hard to correct. Architectural innovation therefore presents established organizations with subtle challenges that may have significant competitive implications. We illustrate the concept's explanatory force through an empirical study of the semiconductor photolithographic alignment equipment industry, which has experienced a number of architectural innovations.
Article
Organizations in today's hypercompetitive world face the paradoxical challenges of “dualism,” that is, functioning efficiently today while innovating effectively for tomorrow. Corporations, no matter how they are structured, must manage both sets of concerns simultaneously. To do this, organizations have to understand and learn to manage the dynamics of innovation that underlie both disruptive and sustaining innovations. Most analyses have been flawed by giving too little weight to the interactions between needs and technologies. Based on a dynamic model of these interactions, three distinct patterns of substitution are identified that illustrate how these two forces intersect.
Chapter
In this paper I try to contrast Marxist (and more broadly realist) theories of meaning with what may be called ‘idealist’ theories of meaning. But a word of explanation is clearly in order.
Chapter
There is a growing consensus that 3D printing technologies will be the next major technological revolution. While a lot of work has already been carried out as to what these technologies will bring in terms of product and process innovation, little has been done on their impact on business model innovation. Yet, history has shown that technological evolution without adequate business model innovation is a pitfall for many businesses. The contribution of this article is threefold. First, it combines the existing literature on business model innovation in an integrated 'inside-outside' framework of business model innovation. Secondly, the changes brought about by 3D printing technologies to the business model components are investigated. Finally, this article shows that in addition to enabling business model innovation, 3D printing technologies have the potential to change the way business model innovation is done, by enabling adaptive business models and by bringing the 'rapid prototyping' paradigm to business model innovation itself.
Article
The Effects of institutional investor types and governance devices on two dimensions of corporate social performance (CSP) were examined. Pension fund equity was positively related to both a people (women and minorities, community, and employee relations) and a product quality (product and environment) dimension of CSP, but mutual and investment bank funds exhibited no direct relationship with CSP. Outside director representation was positively related to both CSP dimensions. Top management equity was positively related to the product quality dimension but unrelated to the people dimension of CSP.
Article
This study examined how participation in open innovation communities influences the innovative and financial performance of firms commercializing open source software. Using an original dataset of open sourcecompaniesintheNetherlands, I foundthatthecommunityparticipation–performancerelationship is curvilinear. In addition, results indicate that extensive technical participation in open source projects is more strongly related to performance for firms that also engage in social (“offline”) community activities, for companies of larger size, and for firms with high R&D intensities. Overall, this research refines our understanding of the boundary conditions under which engagement in community-based innovation yields private returns to commercial actors.
Article
Before the Industrial Revolution, goods were produced by local artisans and craftsmen relying primarily on locally available materials and selling primarily to local customers. These artisans conceived of and then made products, and they sold these products in their own small shops or out of their homes. In this environment, the customer was directly linked to the producer; there was no middleman and no supply chain. The Industrial Revolution ushered in an era of innovation in production methods, mining methods, and machine tools that enabled mass production and allowed the replacement of labor with machines and of traditional energy sources such as wind, water, and wood with coalpowered (and later gas-powered) machines. In the past 200 years, the elements of production have been refi ned, but the underlying economics have remained: competitive advantage goes to the company or companies (organized into a supply chain) that can produce the highest quality part at the lowest cost. Fixed costs—infrastructure and machinery—became separate from variable costs—those expenditures that increased on a per-unit production basis, such as labor and materials. Economies-of-scale production models meant that high-volume production reduced the contribution of the fi xed-cost portion of the cost equation, thus reducing the per-unit cost. Simply put, high throughput and effi ciency yielded higher profi ts ( Pine 1993 ). Today we are entering an era many believe will be as disruptive to the manufacturing sector as the Industrial Revolution was—the age of 3D printing and the digital tools that support it ( Koten 2013 ). At a EuroMold fair in November 2012, 3D Systems used one of its 3D printers to print a hammer. The Economist (2012) used this example to compare the traditional supply chain design-build-deliver model with the emerging 3D printing model:
Article
Three dimensional printing (3DP) is a method for direct digital manufacturing that provides capabilities for creating a wide range of part geometries (including internal channels) in a broad variety of materials, including just about anything that is available as a spreadable powder. Taking advantage of the full variety of materials requires development of specific implementations of 3DP. This paper organizes the process of 3DP implementation into five steps (powder formulation, binder method selection, binder formulation and testing, printing process specification, and post-processing specification) and presents a review of the literature relevant to each step in 3DP implementation.
Article
The dominant explanation for the spread of technological innovations emphasizes processes of influence and information flow. Firms which are closely connected to pre-existing users of an innovation learn about it and adopt it early on. Firms at the periphery of communication networks are slower to adopt. This paper develops an alternative model which emphasizes the role of know-how and organizational learning as potential barriers to adoption of innovations. Firms delay in-house adoption of complex technology until they obtain sufficient technical know-how to implement and operate it successfully. In response to knowledge barriers, new institutions come into existence which progressively lower those barriers, and make it easier for firms to adopt and use the technology without extensive in-house expertise. Service bureaus, consultants, and simplification of the technology are examples. As knowledge barriers are lowered, diffusion speeds up, and one observes a transition from an early pattern in which the new technology is typically obtained as a service to a later pattern of in-house provision of the technology. Thus the diffusion of technology is reconceptualized in terms of organizational learning, skill development, and knowledge barriers. The utility of this approach is shown through an empirical study of the diffusion of business computing in the United States, reporting survey and ethnographic data on the spread of business computing, on the learning processes and skills required, and on the changing institutional practices that facilitated diffusion.
Article
We review the empirical research on Free/Libre and Open-Source Software (FLOSS) development and assess the state of the literature. We develop a framework for organizing the literature based on the input-mediator-output-input (IMOI) model from the small groups literature. We present a quantitative summary of articles selected for the review and then discuss findings of this literature categorized into issues pertaining to inputs (e.g., member characteristics, technology use, and project characteristics), processes (software development practices, social processes, and firm involvement practices), emergent states (e.g., social states and task-related states), and outputs (e.g. team performance, FLOSS implementation, and project evolution). Based on this review, we suggest topics for future research, as well as identify methodological and theoretical issues for future inquiry in this area, including issues relating to sampling and the need for more longitudinal studies.
Article
The aim of this study is to investigate the impact of participative management on the behaviour of employees and the financial effectiveness of the enterprise. The analytical data are based on the survey of 308 Taiwan enterprises. Multiple regression results show that both suggestion system and labour-management committee have a positive impact on employees' behaviour in terms of turnover and absenteeism rates. Likewise, the quality control circle (QCC) and profit sharing have a positive impact on organizational effectiveness as seen in profit and revenue growth rates. However, employee stock-ownership plans and grievance-handling systems have negative effects on both performance indicators - employee behaviour and organizational effectiveness. The practical implications are also discussed.
Article
The popular work by Clayton Christensen and colleagues on disruptive technology serves as a springboard to examine five key issues concerning the effect of technological change on firms and industries. This article challenges and integrates current theory in this domain, and raises questions to initiate new work. The discussion is organized around the following themes: the definition of disruptive technology, the predictive use of the theory of technological disruption, explaining the success of incumbents, the implications of the theory for the merits of being customer-oriented, and the merits of creating a spin-off to commercialize the disruptive technology. Examination of these themes shows the relationship of the disruptive technology work with research in a variety of related areas. Many of these links have not been made explicit before, and several of them have been misunderstood. This article is intended to encourage further research on disruptive technology and spur debate by practitioners and scholars alike.
Article
The three issues of measuring low-end disruptions, general measure of disruptiveness, and the criticism of Christensen's (1997) disruptiveness notion by Danneel (2004), are discussed. The aim is to add rigor to an important, substantive area of research on disruptiveness, and the first step in achieving this goal is to identify ways to measure the disruptiveness construct. This is done by elaborating the use of ex post measures to make ex ante predictions about the type of incumbents better able to develop disruptive innovations in relation to other firms. The disruptive technology framework to make ex ante predictions about the type of firms likely to develop disruptive innovations.
Article
Copyright in 1791: An Essay explores the meaning of the Copyright Clause of the United States Constitution as the Founders understood it in their own time. In his examination of the history of copyright prior to the adoption of the Constitution, Professor Joyce and his co-author, L. Ray Patterson of Georgia, consider the language of the Founders' provision for copyright against the background of Anglo-American copyright history from the 16th Century to 1787. Among their principal findings is that, to the Founders, a relatively brief term of protection, followed by entry of the work into the public domain, was a crucial element of the copyright grant required to protect against the inherent dangers of the copyright monopoly. In addition, Copyright in 1791: An Essay uncovers for the first time the historical interrelationship between the Copyright Clause and the Free Press Clause of the First Amendment. Earlier scholars have sought to reconcile these two constitutional provisions primarily through an analysis of doctrinal considerations, such as the idea/expression dichotomy. The authors conclude that the Founders themselves saw no need for reconciliation: the two provisions already were complementary, both embodying anti-censorship, anti-monopoly values learned by the Founders from their English forebears. In short, the Copyright Clause and the Free Press Clause share a common origin.
Article
Versions of this paper-not read from the present manuscript-were given from 1971 onward to colloquia at New York University, M.I.T., the University of California (Los Angeles), and elsewhere. The present version was written on the basis of a transcript of the M.I.T. version prepared by the editors of this volume. Donnellan himself heard the talk at U.C.L.A., and he has a forthcoming paper, “Speaker Reference, Descriptions and Anaphora,” that to a large extent appears to be a comment on considerations of the type mentioned here. (He does not, however, specifically refer to the present paper.) I decided not to alter the paper I gave in talks to take Donnellan's later views into account: largely I think the earlier version stands on its own, and the issues Donnellan raises in the later paper can be discussed elsewhere. Something should be said here, however, about the pronominalization phenomena mentioned on p. 270 below. In his forthcoming paper, Donnellan seems to think that these phenomena are incompatible with the suggestion that speaker's reference is a pragmatic notion. On the contrary, at the end of the present paper (and of the talk Donnellan heard), I emphasize these very phenomena and argue that they support this suggestion. See also footnote 31 below.
Article
A unique opportunity presented to examine the process of building the theory of disruption, is discussed. The development of the theory of disruption is built in two major stages such as the descriptive and the normative stage. The descriptive stage of theory building is a preliminary stage, because researchers generally must pass through it before developing normative theory. The theory of building process will create the opportunity for scholars to improve the crispness of definitions, the salience of the categorization scheme, and the methods for measuring the phenomena and the outcomes of interest.
Article
The three specific types of disruptive innovations, business-model innovations, and radical (new to the world) product innovations, are discussed. The two innovations create different kinds of markets, pose different challenges for established firms and have different implications for managers. The first model innovators simply redefine what an existing product or service is and how it is provided to the customer. The second model innovation introduces new products and value propositions, disturbing the prevailing consumer habits and behaviors in a major way. All the three types of innovation may follow a similar process to invade existing markets and may have equally disruptive effect son incumbent firms.
Article
Christensen's (1997) thesis of disruptive technology has been highly praised and popular with managers. Two of its premises are important and insightful. These deal with the performance path of a disruptive technology and its impact on dominant incumbents who ignore it in favor of listening to their current consumers. However, Christensen's thesis also suffers from limitations, two of which are troubling: ambiguity in the definition of disruptive technology and the logic of the sampling to test its validity. Several studies I have conducted over the years suggest that the disruption of incumbents - if and when it occurs - is due not to technological innovation per se but rather to incumbents' lack of vision of the mass market and an unwillingness to cannibalize assets to serve that market. I have developed metrics to test these concepts, along with models to predict the outcomes and financial value of strategic changes firms can make to avoid these problems.
Article
To escape the intense competition of today's global economy, large established organizations seek growth options beyond conventional new product development that leads to incremental changes in current product lines. Radical innovation (RI) is one such pathway, which results in organically driven growth through the creation of whole new lines of business that bring new to the world performance features to the market and may result in the creation of entirely new markets. Yet success is elusive, as many have experienced and scholars have documented. This article reports results of a three-year, longitudinal study of 12 large established firms that have declared a strategic intent to evolve their RI capabilities. In contrast to other academic research that has analyzed specific projects to understand management practices appropriate for RI, the present research reported explores the evolution of management systems for enabling radical innovation to occur repeatedly in large firms and reports on one aspect of this management system: organizational structures for enabling and nurturing RI. To consider organizational structure as a venue for capability development is new in the management of innovation and dynamic capabilities literatures. Conventional wisdom holds that RIs should be incubated outside the company and assimilated once they have gained traction in the marketplace. Numerous experiments with organizational structures were observed that instead work to manage the interfaces between the RI management system and the mother organization. These structures are described here, and insights are drawn out regarding radical innovation competency requirements, transition challenges, senior leadership mandates, and business-unit ambidexterity. The centerpiece of this research is the explication of the Discovery–Incubation–Acceleration framework, which details three sets of necessary, though not sufficient competencies, for building an RI capability.
Article
By identifying the possibility that technologies with inferior performance can displace established incumbents, the notion of disruptive technologies, pioneered by Christensen (1997), has had a profound effect on the way in which scholars and managers approach technology competition. While the phenomenon of disruptive technologies has been well documented, the underlying theoretical drivers of technology disruption are less well understood. This article identifies the demand conditions that enable disruptive dynamics. By examining how consumers evaluate technology and how this evaluation changes as performance improves, it offers new theoretical insight into the impact of the structure of the demand environment on competitive dynamics. Two new constructs—preference overlap and preference symmetry—are introduced to characterize the relationships among the preferences of different market segments. The article presents a formal model that examines how these relationships lead to the emergence of different competitive regimes. The model is analyzed using computer simulation. The theory and model results hold implications for understanding the dynamics of disruptive technologies and suggest new indicators for assessing disruptive threats. Copyright © 2002 John Wiley & Sons, Ltd.
Article
In an era of revolutionary new developments in basic information technology, innovation in its employment among organizations is increasingly crucial to competitive survival and success. The Information Systems (IS) unit within the business is largely responsible for meeting this challenge. Yet, current theory explains little about IS innovation and its role in organizational innovation in general. We suggest some needed foundations. IS innovations are posited to be of three types: Type I innovations confined to the IS task; Type II innovations supporting administration of the business; and Type III innovations imbedded in the core technology of the business. Diffusion among organizations is conjectured to occur by means of a communication circuit in which each IS unit is linked to its professional and business environments. Systematic differences in adoption and evolution patterns among IS innovation types are expected. Three specific IS innovations---data administration, the information center, and material requirements planning (MRP)---illustrate.
Article
The purpose of this study was to test a model of the organizational innovation process that suggests that the strategy-structure causal sequence is differentiated by radical versus incremental innovation. That is, unique strategy and structure will be required for radical innovation, especially process adoption, while more traditional strategy and structure arrangements tend to support new product introduction and incremental process adoption. This differentiated theory is strongly supported by data from the food processing industry. Specifically, radical process and packaging adoption are significantly promoted by an aggressive technology policy and the concentration of technical specialists. Incremental process adoption and new product introduction tends to be promoted in large, complex, decentralized organizations that have market dominated growth strategies. Findings also suggest that more traditional structural arrangements might be used for radical change initiation if the general tendencies that occur in these dimensions as a result of increasing size can be delayed, briefly modified, or if the organization can be partitioned structurally for radical vs. incremental innovation. In particular, centralization of decision making appears to be necessary for radical process adoption along with the movement away from complexity toward more organizational generalists. This suggests that a greater support of top managers in the innovation process is necessary to initiate and sustain radical departures from the past for that organization.
Conference Paper
Purpose – This paper aims to present an assessment framework which captures the essential characteristics and holistic success factors for disruptive innovation based on the original theory of Christensen, a number of clarifications as reported in the literature and a study of known, successful cases in the literature. Design/methodology/approach – The framework was designed based on the improved understanding of disruptive innovation challenges and on the holistic consideration of innovation as a dynamic process. It consists of structured questions which could be used to guide detailed data collection and analysis needed to answer the key questions which constitute the assessment framework. They are grouped under market positioning, technology and other favourable drivers. Findings – A simple yet comprehensive assessment framework for disruptive innovation has been developed. Two of the known successful cases, namely the steel minimill of Nucor and the 3.5 inch disk drive of Conner/Seagate, were presented in more detail to illustrate the use of this systematic framework in assessing the success potential of these cases of disruptive innovations in either the low‐end or new markets. A third and fairly new example, that of the limited mobile phone system/product of UTStarcom, was then presented to illustrate a case where the framework revealed reasons for potential failure. A fourth example of Google's web‐based office applications then illustrated how the framework might be used to study the disruptive potential of a new product. Originality/value – This paper enables a more accurate and systematic assessment of disruptive innovation. The framework also has the potential to be further developed into a systematic tool for answering the question of whether the disruptive innovation theory could indeed be used to provide ex ante prediction of the success of a new disruptive innovation.
Article
Some very successful “open source” software products have been and are being developed