PurposeDisruptive innovation theory has attracted the interest of researchers and practitioners across many areas, resulting in the development of new business models and strategies. Despite the increasing scholarly attention, its definition has not yet been understood, the understanding of the term “disruptive” and the complex nature of this innovation has provoked some misinterpretations, and the meaning remains ambiguous. To address this confusion, this article undertakes a critical review of disruptive innovation in an attempt at providing a solid theoretical grounding.Design/methodology/approachThe review examines the key issues of published articles, identified after conducting a search in the Web of Science scholarly database. The analysis highlights the basic definitions of disruptive innovation, showing its evolution, types and its characteristics. This article also examines the behaviours adopted by the actors associated with disruptive innovation (i.e. incumbents, entrants and customers).FindingsOverall, this article finds that disruptive innovation has its own elements to be identified, requiring an in-depth analysis to avoid confusing with other innovation approaches. The findings suggest that disruptive innovation affects businesses and sectors in varied and complex ways because customers from low-end market and mainstream market appreciate this innovation. Further, its impact on practice is huge and incites further efforts in establishing a stronger theoretical grounding.Originality/valueOur research contributes on the evolution of this theory, helping to better understand the phenomenon of disruption and can be used for different types of research settings.

This chapter presents key issues taken from the review of existing literature on disruptive technologies and their importance for successful business strategies. The review is done within the framework of the disruptive innovation theory. The chapter covers an historical overview of the topic from the precursors to the most recent developments as well as an analysis of its predictive side. It also finds out whether the theory allows for the development of business models. Last section is devoted to the identification of strategies that are applicable in technological disruptive innovations and discusses relevant issues to develop such strategies. Disruptive innovations are widely recognized as key engines for competitive advantage, so it is important for companies to recognize the opportunities that emerge from developing disruptive technological innovations.

This chapter presents key issues taken from the review of existing literature on disruptive technologies and their importance for successful business strategies. The review is done within the framework of the disruptive innovation theory. The chapter covers an historical overview of the topic from the precursors to the most recent developments as well as an analysis of its predictive side. It also finds out whether the theory allows for the development of business models. Last section is devoted to the identification of strategies that are applicable in technological disruptive innovations and discusses relevant issues to develop such strategies. Disruptive innovations are widely recognized as key engines for competitive advantage, so it is important for companies to recognize the opportunities that emerge from developing disruptive technological innovations.