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Incumbents’ responses to disruptive business model innovation: the moderating role of technology vs. market-driven innovation

Journal article
Authors Solomon R. Habtay
Magnus Holmén
Published in International Journal of Entrepreneurship and Innovation Management
Volume 18
Issue 4
Pages 289-309
ISSN 1368-275X
Publication year 2014
Published at Department of Economy and Society, Innovation and Entrepreneurship (IIE)
Pages 289-309
Language en
Links www.inderscienceonline.com/doi/pdf/...
Keywords disruptive market-driven; entrepreneurial orientation; EO; market orientation; MO; acquisition; leverage; differentiation; business model innovation; disruptive technology-driven; double-threat; single-threat
Subject categories Econometrics, Business Administration, Other Social Sciences

Abstract

Current research argues that incumbents should respond to disruptive innovation by setting up a separate business unit. This recommendation stems from research predominantly carried out on disruptive technologies in high-tech industries but whether incumbents respond differently to other types of disruptive business model innovations and whether the type of response leads to a difference in performance have not been empirically analysed. By collecting data from 88 strategic business units (SBUs) and dividing the sample into incumbents responding to disruptive technology against those responding to disruptive market-driven innovations, the study shows that the latter type of firms can succeed in managing both disruptive and sustaining innovations without setting up structurally separated business units. We discuss the implications of our results and highlight areas for further research.

Page Manager: Webmaster|Last update: 9/11/2012
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