Disruptive Innovation: the High-End Market Perspective (original) (raw)
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A reflective review of disruptive innovation theory
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This paper is devoted to integrate and discuss the latest arguments on the Disruptive Innovation theory, and to provoke questions for further research. The key issues have been summarized into three major perspectives: (1) "What is disruptive technology and disruptive innovation", including the evolution, description, and the actual definition of disruptive innovation. (2) "The predictive use of the theory" and (3) "How to enable a potential disruptive innovation". After an extensive and reflective review, we have found that the research focus to- date has well studied the business model and organizational challenges of exploiting disruptive innovation. There is a trend to tailor abundant knowledge and tools of marketing literature to study identification of emerging markets and customers' latent needs. The technology perspective received very limited coverage and a significant amount of research is recommended on the purposeful creation of candidate technologies for disruptive innovation. A series of potential inhibitors and enablers of Disruptive Innovation are also identified as managerial "take-away".
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This study proposes the concept of disruptive firms: they are firms with market leadership that deliberate introduce new and improved generations of durable goods that destroy, directly or indirectly, similar products present in markets in order to support their competitive advantage and/or market leadership. These disruptive firms support technological and industrial change and induce consumers to buy new products to adapt to new socioeconomic environment. In particular, disruptive firms generate and spread path-breaking innovations in order to achieve and sustain the goal of a (temporary) profit monopoly. This organizational behaviour and strategy of disruptive firms support technological change. This study can be useful for bringing a new perspective to explain and generalize one of the determinants that generates technological and industrial change. Overall, then this study suggests that one of the general sources of technological change is due to disruptive firms (subjects), ra...
Perspectives on Disruptive Innovations
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Everyday experiences speak to the accelerated pace of innovation in this era of continual change. Sometimes, innovations enhance the value of existing products and services. At other times, they render existing business models obsolete, disrupt value-networks, prompt providers to rethink who their customers are, and lead customers to rethink what they value. What does it mean to manage in such a world of disruptive changes, and how might we research this phenomenon? Together with the contributors to this special issue, we anchor, explore and extend the meanings associated with the concept of disruptive innovation. In particular, we discuss several perspectives on disruptionevolutionary, relational, temporal and framingthat culminate in a performative (as opposed to a predictive) approach to thinking about the phenomenon. In doing so, our intention is to open up the agenda for both researchers and practitioners.
A Reflective Review of Disruptive Innovation Theoryi jmr_272 435..452
Disruptive Innovation Theory has created a significant impact on management practices and aroused plenty of rich debate within academia. Copious as the studies are, the scattered and conflicting nature of the literature on disruptive innovation in the last decade may pose a state of ambiguity for future research, thus necessitating a comprehensive review at this juncture. This paper first clarifies the basic concept and potential misinterpretations of the theory. Believing in the predictive value of the theory on firm performance, the authors then summarize and critique the research on how to enable potential disruptive innovation from internal, external, marketing and technology perspectives. The different perspectives inspired the authors to identify a number of key research directions within the disruptive innovation research domain. Potential future research is also briefly discussed by integrating disruptive innovation with other research domains, such as open innovation. Finally, in addition to theoretical contributions , the authors make practical contributions by outlining a series of potential inhibi-tors and enablers of disruptive innovation as managerial 'take-aways'.
Disruptive Innovation Explored
IPSE International Conference on …, 2002
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 research 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.
Journal of Product Innovation Management
Different views exist in the literature regarding which adopter group to target with a go-to-market strategy: early market consumers or consumers in the majority market. Particularly when radical innovations are launched, the approach to the market becomes a critical success factor for firms seeking to recoup their significant investments in these innovation endeavors. Four experimental studies investigate whether and how to differentiate the design of go-to-market strategies, represented as bundles of marketing mix elements consisting of brand name, launch price, message content, and distribution intensity, for different consumer groups. Using the concept of consumer innovativeness, this study distinguishes between the early market of innovative consumers and the majority market populated by consumers low in innovativeness. Applying a signaling framework, the results indicate that the early market can be targeted with a go-to-market strategy signaling exclusive innovativeness; the majority market should be approached with a strategy signaling security. Further, at a signal vehicle level using specific marketing mix elements, the study demonstrates the relevance of adapting the go-to-market strategy for a radical innovation with regard to message content, distribution intensity, and launch price in line with consumer innovativeness. The results also indicate that the adaptation of the two signals and their signal vehicles to the targeted consumer markets is generally not necessary for incremental innovations. The authors discuss the implications of their study for future research and provide managers with recipes of go-to-market strategies for radical innovations when targeting consumers in the early versus majority market.
Creativity and Innovation Management
The literature on disruptive innovation has convincingly explained why many established firms encounter problems under conditions of discontinuous change. Incumbents fail to invest in new technologies that are not demanded by their existing customers. This argument is grounded in resource dependency theory and the associated assumption that existing customers control a firm’s internal resource allocation processes. While the problem of disruptive innovation has been convincingly explained, there is still a need for managerial solutions. We argue that a key reason why such solutions are lacking can be found in the asymmetric assumptions made in the original theory of disruptive innovation. Specifically, we identify two related forms of asymmetry. First, the focal (incumbent) firm is treated as a collection of heterogeneous actors with different preferences, incentives and competencies, whereas firms in the surrounding environment are treated as if they contained no such heterogeneity. Second, the theory of disruptive innovation describes incumbents as controlled by their environment, but has failed to recognize that the environment can also be influenced. In this paper we argue that a more symmetric theory of disruptive innovation — i.e. one that treats all similar entities in the same way — opens up for a range of interesting managerial solutions.