Incumbent Performance in the Face of a Radical Innovation: Towards a Framework for Incumbent Challenger Dynamics

Ansari, Shaz; Krop, Pieter

doi:10.2139/ssrn.2034266

Cited by 54 publications

(91 citation statements)

References 146 publications

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“…Moreover, accumulated competences and experience enable incumbents to develop new applications and features to compete head-on with new entrants, if they so choose (cf. Ansari and Krop, 2012).…”

Section: Discussionmentioning

confidence: 99%

Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?

Bergek¹,

Berggren²,

Magnusson³

et al. 2013

Research Policy

284

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The creative destruction of existing industries as a consequence of discontinuous technological change is a central theme in the literature on industrial innovation and technological development. Established competence-based and market-based explanations of this phenomenon argue that incumbents are seriously challenged only by 'competence-destroying' or 'disruptive' innovations, which make their existing knowledge base or business models obsolete and leave them vulnerable to attacks from new entrants. This paper challenges these arguments. With detailed empirical analyses of the automotive and gas turbine industries, we demonstrate that these explanations overestimate the ability of new entrants to destroy and disrupt established industries and underestimate the capacity of incumbents to perceive the potential of new technologies and integrate them with existing capabilities. Moreover, we show how intense competition in the wake of technological discontinuities, driven entirely by incumbents, may instead result in late industry shakeouts. We develop and extend the notion of 'creative accumulation' as a way of conceptualizing the innovating capacity of the incumbents that appear to master such turbulence. Specifically, we argue that creative accumulation requires firms to handle a triple challenge of simultaneously (a) fine-tuning and evolving existing technologies at a rapid pace, (b) acquiring and developing new technologies and resources and (c) integrating novel and existing knowledge into superior products and solutions.

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Section: Discussionmentioning

confidence: 99%

Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?

Bergek¹,

Berggren²,

Magnusson³

et al. 2013

Research Policy

284

View full text Add to dashboard Cite

show abstract

“…Leading companies can be threatened, and established incumbents are sometimes displaced by new challengers (Ansari & Krop, 2012), destroying markets and creating new ones.…”

Section: Radical Innovationmentioning

confidence: 99%

How does altruistic leader behavior foster radical innovation? The mediating effect of organizational learning capability

Domínguez-Escrig

Broch

Chiva

et al. 2016

LODJ

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Findings. Results suggest that organizational learning capability fully mediates the relationship between altruistic leader behavior and radical innovation. Research limitations/implications. The database used in the study is very heterogeneous.Future research might delimit the database by organization size or sector. Practical implications. Results suggest ideas for organizations that want to implement a working environment that fosters innovation performance in order to achieve radical innovationsOriginality/value. This is one of the few studies to concentrate on altruistic leader behaviors as such. This paper contributes to understanding how altruistic leader behavior affects radical innovation and the key role played by organizational learning capability.

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“…This role is expected from entrepreneurial new entrants instead (Hockerts and Wüstenhagen, 2010). However, new entrants not only face the problem that they have to challenge powerful incumbents (Ansari and Krop, 2012), but also deal with another barrier that is relevant to new entrants and incumbents alike: sustainable technologies lack market attractiveness (Johnson and Suskewicz, 2009). Sustainable technologies often do not fit existing production methods, managerial expertise and customer preferences (Johnson and Suskewicz, 2009) and the potential benefit of resolving environmental degradation in itself does not seem a sufficient condition to generate widespread customer acceptance (Kley et al, 2011;Siegel, 2009).…”

Section: Introductionmentioning

confidence: 99%

Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles

Bohnsack¹,

Pinkse²,

Kolk³

2014

Research Policy

486

294

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Sustainable technologies challenge prevailing business practices, especially in industries that depend heavily on the use of fossil fuels. Firms are therefore in need of business models that transform the specific characteristics of sustainable technologies into new ways to create economic value and overcome the barriers that stand in the way of their market penetration. A key issue is the respective impact of incumbent and entrepreneurial firms' path-dependent behaviour on the development of such new business models. Embedded in the literature on business models, this paper explores how incumbent and entrepreneurial firms' path dependencies have affected the evolution of business models for electric vehicles. Based on a qualitative analysis of electric vehicle projects of key industry players over a five-year period (2006)(2007)(2008)(2009)(2010), the paper identifies four business model archetypes and traces their evolution over time. Findings suggest that incumbent and entrepreneurial firms approach business model innovation in distinctive ways. Business model evolution shows a series of incremental changes that introduce service-based components, which were initially developed by entrepreneurial firms, to the product. Over time there seems to be some convergence in the business models of incumbents and entrepreneurs in the direction of delivering economy multi-purpose vehicles.

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Incumbent Performance in the Face of a Radical Innovation: Towards a Framework for Incumbent Challenger Dynamics

Cited by 54 publications

References 146 publications

Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?

Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?

How does altruistic leader behavior foster radical innovation? The mediating effect of organizational learning capability

Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles

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