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Technological Discontinuties, Organizational Capabilities, and Strategic Commitments
Abstract
Innovations based on radically new technologies are believed to create advantages for entrants over incumbents in the relevant markets. Under what circumstances is this true? To what extent do incumbents' disadvantages stem from their failure to make timely commitments to new capabilities and new strategies as opposed to their inability to implement those commitments effectively? We explore those questions in relation to recent literature in economics and organization theory and introduce the concept of the ‘value network’. Historical evidence suggests that entrants find greatest advantage when innovations disrupt established trajectories of technological progress, a circumstance associated with moves to new value networks. The incumbent's disadvantage, hence, seems to be associated with an inability to change strategies, not technologies.
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Citations
Cited by
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Sørensen, J. B., & Stuart, T. E. (2000) · Administrative Science Quarterly · doi:10.2307/2666980 · Cited by 1,862
Toward a Theory of Paradox: A Dynamic equilibrium Model of Organizing
Smith, W. K., & Lewis, M. W. (2011) · Academy of Management Review · doi:10.5465/amr.2009.0223 · Cited by 1,631
Disruptive Technology Reconsidered: A Critique and Research Agenda
Danneels, E. (2004) · Journal of Product Innovation Management · doi:10.1111/j.0737-6782.2004.00076.x · Cited by 1,075
KNOWLEDGE TRANSFER THROUGH INHERITANCE: SPIN-OUT GENERATION, DEVELOPMENT, AND SURVIVAL.
Agarwal, R., Echambadi, R., Franco, A. M., & Sarkar, M. (2004) · Academy of Management Journal · doi:10.2307/20159599 · Cited by 983
Fifty Years of Empirical Studies of Innovative Activity and Performance
Cohen, W. M. (2010) · Handbook of the Economics of Innovation · doi:10.1016/s0169-7218(10)01004-x · Cited by 962
Metadata
- Authors
- ROSENBLOOM, R. S., & CHRISTENSEN, C. M.
- Venue
- Industrial and Corporate Change
- Publisher
- Oxford University Press (OUP)
- Published
- 1994
- Volume
- 3
- Issue
- 3
- Pages
- 655-685
- ISSN
- 0960-6491 (ISSN-L)
- 1464-3650
- OpenAlex
- W2005489297
- Cited by
- 278
- References
- 0
- FWCI
- 11.40
- Type
- journal article
- Language
- en
- Open access
- closed
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- ROSENBLOOM, R. S., & CHRISTENSEN, C. M. (1994). Technological Discontinuties, Organizational Capabilities, and Strategic Commitments. Industrial and Corporate Change. https://doi.org/10.1093/icc/3.3.655
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