Design thinking in responding to disruptive innovation: A case study

How can the design thinking approach assist firms in developing response strategies to momentum-gaining disruptive innovations, along the lines of effectively exploiting established technologies and corresponding products/services? Such exploitative response strategies, implying successfully strengthening and leveraging the disrupted firm’s existing technology without embracing the disruptive elements, have been, to a large extent, overlooked in the disruptive innovations literature. Using an inductive analysis of a critical case (a major cork stopper producer), the current study aims at developing a systematic understanding of exploitative strategic options and the role of design thinking in enabling them. The findings shed light on the effectiveness of the design thinking mindset to respond to disruptive innovations. In addition, we present evidence that a design thinking method can be successfully applied to process innovation. Finally, we demonstrate that to achieve a radical innovation based on design thinking principles, the establishment of design discourse is required

Implementing product platforms in the global enterprise : Lessons from an LED industry leader

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Established Firms’ Strategic Decision Making when Faced with Low-End Disruptive Innovation

How should incumbent firms respond to emerging disruptive business model innovations (i.e., substantive changes in the way the value is created and appropriated) in their industries? Despite much discussion, the current literature provides no clear-cut answer. This lack of theoretical understanding is reflected in frequently observed in practice problem when established firms are unable to adapt to their industries’ disruptive changes. This sets the motivation for the current dissertation, aimed at advancing our understanding of the phenomenon of disruptive business model innovations. I intend to achieve this goal by addressing the following two research questions: (1) what are the optimal responses of established incumbent companies to disruptive business model innovations gaining momentum in their industries, and (2) what are the factors causing managers of incumbent companies to make different strategic choices in such situations? To address these questions, I unite existing views in a deductively developed model of incumbent response to disruptive business model innovations. Then, I build a dynamic behavioral model of incumbent firms’ responses. The model describes observed behavioral patterns in disrupted industries and explains incumbent actions and reasons why these actions might deviate from the rational paths. Also, I propose a rational response model, comprising a set of testable propositions regarding the contingency factors determining optimal incumbent actions when facing a disruptive business model innovation. Empirical parts of the dissertation are based on two surveys of incumbents facing low-end disruptive business model innovations in their industries – real estate brokerage and higher education.2 year

Business model innovation ::a theoretical perspective and its implications for entrepreneurship research

The business model innovation construct is gaining substantive attention in management literature, emphasizing its role for creating and sustaining a firm’s competitive advantage in rapidly changing business environments. However, little advancement has been made toward a holistic, theory-based understanding of the nature of business model innovation, along with its context-specific antecedents and outcomes. Combining the theoretical insights of the literature on organizational routines and ‘activity system’ perspectives on business models, we refine the conceptualization of a business model as a cluster of interrelated routines, with its internal change dynamics determining the process and scope of business model innovation. Within the developed process model of business model innovation, we distinguish between potential and realized business model innovation processes, and derive theoretical propositions regarding external and internal environment, business model innovation, and value creation and value capture

Business model innovation in incumbent firms ::a conceptual model of process, antecedents, and outcomes

Purpose: The business model innovation construct is gaining substantive attention in management literature, emphasizing its role for creating and sustaining a firm’s competitive advantage in rapidly changing business environments. However, little advancement has been made toward a holistic, theory-based understanding of the nature of business model innovation, along with its context-specific antecedents and outcomes. Design: Conceptual Paper. Combining the theoretical insights of the literature on organizational routines and ‘activity system’ perspectives on business models, we refine the conceptualization of a business model as a cluster of interrelated routines, with its internal change dynamics determining the process and scope of business model innovation. Findings: First, we refine the conceptualization of business model innovation through the lens of a dynamic cluster of routines. Second, we recognize the roles and relevance of the different components of a firm’s business model innovation, setting the stage for future research scrutinizing these components and their influence on strategic direction and consequent performance. Third, by identifying the conditions under which the components of BMI lead to a firm’s value creation and capture, we bring answers to questions such as “What leads to significant performance differences within an industry?” and “How do firms sustain such differences over time?” Originality / Value: We distinguish between potential and realized business model innovation processes, and derive theoretical propositions regarding external and internal environment, business model innovation, and value creation and value capture