Organizational Responses to Discontinuous Innovation: A Case Study Approach

Macher, Jeffrey and Richman, Barak D., "Organizational Responses to Discontinuous Innovation: A Case Study Approach" . International Journal of Innovation Management, Vol. VII, No. 1, March 2004

Abstract:

Research that examines entrant-incumbent dynamics often points to the organizational limitations that constrain incumbents from successfully pursuing new technologies or fending off new entrants. Some incumbents are nevertheless able to successfully implement organizational structures and develop routines that overcome these institutional constraints. We provide a case-study analysis of how three firms - Motorola, IBM and Kodak - responded to "discontinuous" innovations and the associated structural and organizational limitations that are typical to incumbent organizations. Each firm was able to capture gains from new technologies and develop profitable products in emerging markets, although their abilities to sustain these gains varied due to subsequent organizational changes.

Drawing from these case studies, we synthesize how firms can institute organizational strategies to continue to capture gains from disruptive innovations. A schema suggests that particular organizational strategies are comparatively optimal for corresponding points along innovation lifecycle.

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