Disruptive innovation through a dynamic capabilities lens: an exploration of the auto component sector in India

Deepak Pandit, Maheshkumar P. Joshi, Rajen K. Gupta and Arun Sahay

International Journal of Indian Culture and Business Management, 2017, vol. 14, issue 1, 109-130

Abstract: Innovation has gained momentum for the development; spread; and survival of auto industrial firms in India. In this paper; we study the less-explored aspect of organisational response focusing on discontinuous innovation. The Indian auto sector requires a tool for long-term market dominance; particularly owing to the rapid change in the business environment. This can be achieved through a special kind of discontinuous innovation known as disruptive innovation (DI). We further affirm how developing DI is facilitated by the firm's dynamic capability (DC); to substantiate our claims; we develop and utilise a survey instrument to test a hypothesised model with responses from various firms affiliated with the Indian auto component industry. Our findings confirm the positive roles of DC and research and development (R%D) expenditure as antecedents to DI. We further conduct exploratory analysis to study factors such as R%D and environmental turbulence as moderators of the DC-DI relationship. We offer the following contributions: the operationalisation of DC and DI for the Indian context, a sector specific study and critical results pertaining to moderating role of R%D and environmental turbulence on the positive DC-DI relationship.

Keywords: dynamic capability; disruptive innovation; automotive components; emerging economies; India; economic liberalisation; automobile industry; research and development; R%D expenditure; environmental turbulence. (search for similar items in EconPapers)
Date: 2017
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