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1 – 10 of over 8000There are uncertainties concerning how innovators can successfully venture into disruptive innovations and how incumbents can react to the emergence of such innovations…
Abstract
Purpose
There are uncertainties concerning how innovators can successfully venture into disruptive innovations and how incumbents can react to the emergence of such innovations. Disruptive digital innovations, which use information technology to disrupt business contexts and can evolve rapidly to either successes or failures, have unique challenges. The literature has largely remained silent concerning these. Also, existing studies often focus on innovations originating in developed economies and just on successful cases. There is a lack of comparative focus on successful and failure cases emerging across economies. The purpose of this paper is to fill these gaps.
Design/methodology/approach
This paper assesses the evolution of disruptive digital innovations in various contexts through a financial management-motivated conceptual framework. Contrary to existing works, this paper focuses on both successful and failure cases and regards the influence of various stakeholders further to innovators and incumbents to explain the successes or failures of the innovation.
Findings
There are some common success factors for disruptive digital innovation. These include an inherent focus on social value, alignment to financiers' interests and rivals' actions and strategic collaborations to create a synergy effect.
Research limitations/implications
Innovators can cause effective digital disruption by focusing on social and financial values. Success can also largely depend on strategic partnerships rather than actions by an individual entity. Thus, venturing and managing disruptive digital innovation is not an isolated but a social process.
Originality/value
This paper recommends propositions for innovators and incumbents to venture into and confront disruptive digital innovations effectively. Its originality lies in focusing on both successful and failure cases, unexplored in literature, to develop the propositions.
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Faisal Rasool, Pisut Koomsap, Bilal Afsar and Babrak Ali Panezai
Disruptive innovations have the potential to fundamentally change how businesses operate. This study aims to propose a five-step framework to help firms develop disruptive…
Abstract
Purpose
Disruptive innovations have the potential to fundamentally change how businesses operate. This study aims to propose a five-step framework to help firms develop disruptive innovations and to offer a scale for evaluating their disruptive potential. This scale can also be applied to identify the disruptive potential of innovations introduced to the market by competitors.
Design/methodology/approach
The framework was designed on the basis of criteria chosen to identify the disruptive potential of innovations at early stages of development based on a theoretical understanding of disruptive innovation, its challenges and holistic consideration of innovation as a dynamic process. It consists of steps that could serve as a reference model during the process of developing innovations with disruptive potential. A case study is discussed in detail to demonstrate the applicability of the framework.
Findings
A simple yet comprehensive assessment framework for disruptive innovation has been developed, which can help develop innovations with disruptive potential in existing settings of incumbent firm. A case study of the Wii demonstrates that Nintendo could have planned its disruptive product using the proposed framework.
Originality/value
Most research works in this area have focused on difficulties experienced by firms facing disruption and failed to highlight its opportunities; this study argues that firms can intentionally create disruptive innovations. The results of this study offer firms a tool that facilitates a proactive approach, helping develop new disruptive innovations and identify those from competitors.
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Agneta Sundström, Akmal S. Hyder and Ehsanul Huda Chowdhury
The aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.
Abstract
Purpose
The aim of this study is to develop and evaluate a market-oriented business model (MOBM) and analyze how it contributes to internationalization of SMEs' disruptive innovation.
Design/methodology/approach
Based on market orientation literature, an MOBM is developed and assessed through collaboration among companies, researchers and networking partners. For the evaluation of the model, qualitative data was collected through workshops, interviews and participatory observations at four case SMEs. Methodologically, the implementation of the MOBM consists of a systematic knowledge development process by following four work packages to support the companies' market-oriented internationalization.
Findings
The results show that SMEs face internal barriers to developing innovativeness that hinder them from creating effective disruptive innovation for the international buyer chain. The study finds that SMEs need to work with an MOBM for developing market intelligence within the organization and seek external support for entering the international market.
Practical implications
The methodological strength allows application, evaluation and modification of the MOBM in close collaboration with the SMEs that directly benefit from its implementation. Modifying the principles of market orientation by practical application, SMEs can apply the MOBM to analyze their internationalization capacity for high-tech disruptive innovations.
Originality/value
This article contributes to new thinking by introducing market orientation to SMEs' internationalization of disruptive innovation. The study highlights the less researched field of disruptive innovation by developing the MOBM to deal with SMEs' internationalization.
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Abiodun Adegbile and David Sarpong
The authors aim to examine the potential opportunities and challenges multinationals operating in Africa are likely to encounter when they seek to pioneer disruptive innovations…
Abstract
Purpose
The authors aim to examine the potential opportunities and challenges multinationals operating in Africa are likely to encounter when they seek to pioneer disruptive innovations at the base of the pyramid (BoP) in African emerging markets.
Design/methodology/approach
Drawing on the extant literature on the BoP, disruptive innovation and the African business context, the authors explore the pioneering of disruptive innovations in the African socio-economic context.
Findings
This study develops various hypotheses to extend our understanding of disruptive innovations at the BoP. The authors also delineate potential managerial and institutional challenges multinational corporations (MNCs) are likely to encounter in their efforts to pioneering disruptive innovations for BoP customers in African emerging markets.
Practical implications
The authors develop some recommendations for MNCs on how to create and capture value from disruptive innovations in African emerging markets
Originality/value
The authors delineate African context-specific managerial and institutional challenges that MNCs might encounter when seeking to develop disruptive innovation at the BoP.
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Clement Ola Adekoya and Akeem Adedayo Adedimeji
The purpose of this paper is to investigate enhancement of library performance by exploiting the potentials of disruptive innovations.
Abstract
Purpose
The purpose of this paper is to investigate enhancement of library performance by exploiting the potentials of disruptive innovations.
Design/methodology/approach
Descriptive survey research design was used for this study. The population of the study was 167 respondents, consisting of 83 professional and 84 para-professional librarians in the libraries of the public higher institutions in Ekiti and Ondo States, Nigeria. Total enumeration sampling technique was used for the study. Data were collected using the questionnaire. Descriptive statistical tools were used for data analysis.
Findings
It was found that disruptive innovation has influence on library operations, the extent of application of disruptive innovation in library operation is low, the extent of using the by-products of disruptive innovation in the libraries is low and the challenges facing the adoption of disruptive innovations in libraries include: high cost of acquiring technological infrastructure, high cost of training library personnel, high costs of internet, inadequate technical know-how and high costs of system maintenance and upgrades.
Practical implications
Libraries should embrace the influence of disruptive innovations in their operations and service delivery.
Originality/value
This study is novel, as it approaches library performance from the perspective of the disruptive innovation. Very few studies emanate from Africa in this area. Most of the previous narratives around disruptive innovation centred around the Western countries such USA, UK, France, Italy, etc., which maintain a lead in library innovation and development. The current study demonstrated that the performance of libraries in Nigeria is not immune from being boosted by disruptive innovations.
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Nicolle Montgomery, Graham Squires and Iqbal Syed
The purpose of this paper is to review the literature on the Disruptive Innovation Theory and on the disruptive potential of real estate crowdfunding (RECF) in the real estate…
Abstract
Purpose
The purpose of this paper is to review the literature on the Disruptive Innovation Theory and on the disruptive potential of real estate crowdfunding (RECF) in the real estate finance industry, assessing whether RECF constitutes a potentially disruptive innovation to the real estate finance industry. Based on a review and synthesis of the literature, the paper advances an initial conceptual framework of core characteristics of disruptive innovations. This framework is used to examine the disruptive potential of RECF in the real estate finance industry.
Design/methodology/approach
This paper is a systematic literature review that synthesizes and analyzes relevant extant research articles retrieved from online databases.
Findings
Findings suggest that according to the theory of disruptive innovations, and the core characteristics of disruptive innovations, RECF is a potentially disruptive innovation to the real estate finance industry. RECF seems to generally align with the classic characteristics of disruptive innovations. A more comprehensive and systematic analysis, supported by empirical data, is necessary to evaluate whether and to what extent RECF constitutes a disruptive innovation to the real estate finance industry.
Research limitations/implications
This study has only captured and reviewed articles published and available in database searches. RECF is a nascent field that has recently begun receiving academic attention.
Practical implications
Real estate plays an integral part in the economy, and the way it is financed has become an increasingly important issue following the Global Financial Crisis. This paper provides useful insights for assessing whether and to what extent RECF may be disruptive to the real estate finance industry.
Social implications
RECF may potentially improve accessibility and affordability of real estate finance, thereby helping to address the problem of shortage of real estate project finance.
Originality/value
While RECF is portrayed in the academic and gray literature as a disruptive innovation, its disruptive potential is yet to be determined. This paper advances an initial conceptual framework of defining characteristics of disruptive innovations. This framework is used to evaluate RECF as a potentially disruptive innovation in the real estate project finance industry. This study forms a basis for future empirical examination of the disruptive potential of RECF in the real estate finance industry.
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Birton J. Cowden and Hadi S. Alhorr
This paper aims to address the link between the internationalization of the MNC and its location choices and the discovery of disruptive innovations among the dispersed network of…
Abstract
Purpose
This paper aims to address the link between the internationalization of the MNC and its location choices and the discovery of disruptive innovations among the dispersed network of subsidiaries.
Design/methodology/approach
A recent categorization of innovation suggests that not all innovations can be treated the same. Distinguishing between the various innovation typologies, this paper focuses on disruptive innovation within an international context. Many researchers have found that large incumbent firms tend to have issues with developing disruptive innovation, and are often disrupted by new entrants. However, there are cases of MNEs being successful with disruptive innovation and this paper sets out to theoretically explain where MNEs find ideas for disruption to aid in the incumbent's curse. Specifically, this paper asks, where do disruptive innovations originate in a MNE?
Findings
Using a transaction cost approach and resource-based view, along with other seminal pieces in international business, it is proposed that disruptive ideas start in subsidiaries. It further proposes the characteristics of these subsidiaries that should increase the likelihood of discovering disruption.
Originality/value
This paper not only expands the boundary conditions of disruptive innovation, but also expands on the “where” question for knowledge acquisition and long-term performance in MNEs.
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Chenxiao Wang, Feng Guo and Qingpu Zhang
Based on the literature on disruptive innovation, this research explores how disruptive innovation directly and indirectly (via innovation speed and innovation quality) influences…
Abstract
Purpose
Based on the literature on disruptive innovation, this research explores how disruptive innovation directly and indirectly (via innovation speed and innovation quality) influences firm performance in relation to the contingency of market-supporting institutions.
Design/methodology/approach
A sample of 207 firms was gathered through questionnaires targeting senior managers and R&D managers from high-tech firms in China with two waves including explanatory variables and outcome variables.
Findings
This empirical results indicate that disruptive innovation positively affects firm performance, and that innovation speed and innovation quality mediate the relationship between disruptive innovation and firm performance. Meanwhile, market-supporting institutions positively moderate the relationship between innovation speed and firm performance, but negatively moderate the relationship between innovation quality and firm performance.
Research limitations/implications
This study suggests that disruptive innovation is important to firm performance, innovation speed and innovation quality play mediating roles, and market-supporting institutions acts as moderating effects. A research limitation is that the data were collected mainly through a questionnaire.
Practical implications
Firms should incorporate disruptive innovation as an important strategy and improve innovation speed and innovation quality to promote firm performance, and policymakers should improve the levels of market-supporting institutions to facilitate innovation and performance.
Originality/value
This study contributes the literature of disruptive innovation by uncovering the positive effect of disruptive innovation and firm performance and the mediating effects of innovation speed and innovation quality on the abovementioned relationship, and revealing their contingency effects of market-supporting institutions.
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David Tyfield and Jun Jin
This paper seeks to explore arguments for the importance of disruptive innovation to China's low‐carbon transition, while such innovation is generally overlooked and/or belittled.
Abstract
Purpose
This paper seeks to explore arguments for the importance of disruptive innovation to China's low‐carbon transition, while such innovation is generally overlooked and/or belittled.
Design/methodology/approach
The paper builds on the multi‐level perspective (MLP) of systems transitions being developed by interdisciplinary scholars regarding low‐carbon innovation to explore the multiple opportunities regarding disruptive innovation in the case of China.
Findings
This exploration details that at the levels of business strategy, national economic development and governance of a transition to ecological sustainability, there is a strong prima facie case that disruptive innovation offers singular opportunities in China regarding low‐carbon innovation, while a focus on hi‐tech innovation alone is unlikely to effect the radical systems transition needed.
Practical implications
Acknowledging and incorporating such opportunities is thus to be encouraged, both in China and elsewhere, including in the formulation of low‐carbon innovation policy. A concerted research programme for ongoing and iterative “second‐order” learning about concrete examples of disruptive low‐carbon innovation is advocated.
Social implications
The increased opportunities for dispersed social involvement in a low‐carbon transition through disruptive innovation are discussed.
Originality/value
The paper offers a novel synthesis of diverse literatures to advocate a significantly different approach to low‐carbon innovation than is evidenced in current policy and policy discourse.
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Wan Liu, Ren-huai Liu, Hui Chen and Jet Mboga
Disruptive technology and innovation represent complex conflicts in nature. This paper aims to present an analytical review of the heterogeneity and conflicts that exist in the…
Abstract
Purpose
Disruptive technology and innovation represent complex conflicts in nature. This paper aims to present an analytical review of the heterogeneity and conflicts that exist in the disruptive technology/innovation between the eastern and western countries using Chinese high-speed railways to illustrate disruptive innovation.
Design/methodology/approach
The emerging economy brings about other theoretical and practical conflicts. Qualitative analysis is conducted on Chinese high-speed railways to assess the validity of innovation characteristics using Professor Clayton M. Christensen’s theories of disruptive technology/innovation and conflict. The authors explore the conflicts that can accompany the introduction of disruptive technologies in the current platform and how appropriately this specific context can lessen these conflicts.
Findings
The study revealed that Christensen’s theories could be applied 100per cent to the Chinese context if the western disruptive innovation theory can meet the practical requirements of Chinese disruptive technology/innovation. Qualitative analysis showed that Chinese high-speed railways had experienced greater success with disruptive innovation mechanism. The authors conclude that while the Chinese market is critical in shaping the kind of innovations that are emerging there, many disruptive technologies/innovations in China have their roots in the low-end market and new market. Implications for theory and practice are discussed.
Originality/value
There exists a research gap in the literature on the Chinese context. Conflict of disruptive technology and innovation within China and the characteristics of the Chinese high-speed railway prompt further research for scholars and practitioners.
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