Technological Efficiency and Organizational Inertia: A Model of the Emergence of Disruption

Christian Buchta (), David Meyer (), Alexander Pfister (), Andreas Mild () and Alfred Taudes ()
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Christian Buchta: Vienna University of Economics and Business Administration
David Meyer: Vienna University of Economics and Business Administration
Alexander Pfister: Vienna University of Economics and Business Administration
Andreas Mild: Vienna University of Economics and Business Administration
Alfred Taudes: Vienna University of Economics and Business Administration

Computational and Mathematical Organization Theory, 2003, vol. 9, issue 2, No 3, 127-146

Abstract: Abstract We study the influence of technological efficiency and organizational inertia on the emergence of competition when firms decide myopically. Using a multi-agent computer simulation model, we observe the competitive reaction of a former monopolist to the advent of a new competitor. While the entrant uses a new technology, the monopolist is free either to stick to his former technology or to switch to the new one. We find that—irrespective of details regarding the demand side—a change of industry leadership occurs only if the new (“disruptive”) technology is not too efficient and organizations are inert.

Keywords: strategic management; organizational decision making; disruptive technologies; multi-agent models; agent-based simulations (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (2)

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DOI: 10.1023/B:CMOT.0000022752.54325.37

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