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

Solomon Russom Habtay and Magnus Holmén

International Journal of Entrepreneurship and Innovation Management, 2014, vol. 18, issue 4, 289-309

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.

Keywords: disruptive innovation; entrepreneurial orientation; market orientation; acquisition; leverage; differentiation; business model innovation; technological innovation; double-threat; single-threat; disruptive technology; market-driven innovation; business units; entrepreneurship. (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (9)

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