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

Peer reviewedPostprin

Value migration: digitalization of shipping as a mechanism of industry dethronement

In this conceptual paper, we review latest developments related to unmanned vessels and sketch potential scenarios that implicate with the existing maritime industry structure. On the one hand, we isolate a range of challenges that make the imminent realization of unmanned vessels seem like a rather utopian pursuit. On the other hand, we explain the reasons that may catalyse their emergence. Inspired by these opposing tensions, we highlight that the digital transformation of the shipping industry has the potential to enhance value within the industry’s ecosystem. However, we also contend that unmanned vessels -if realized- pose a very particular threat to the identity of the shipping industry as we know it. In particular, we build upon the concept of value migration and we highlight the drastic existential changes that may likely stem from a shift to non-seafarer-centric shipping. We conclude with questions that matter for industry dethronement purposes i.e., the possibility that existing industry structures may be substantially reconfigured following a removal of the seafarer as the nucleus of value creation in shipping

Business models innovation in investment banks: A resilience perspective

© 2020, The Author(s). Firms frequently change their business models in order to respond to internal and external challenges. This study aims to explore how investments banks adjust their business models in response to internal and external challenges. Based on a qualitative data from ten major investment banks operating in the largest financial market in the Middle East, we show that investment banks can achieve resilience by adjusting their business models through continuous activity changes in response to internal and external challenges. Specifically, investment banks adjust their business models through deploying alternative combinations of activities from a broad repertoire of activities. Within the same bank, divisions that respond to external challenges tend to sustain their performance, whereas resilient divisions that respond to both internal and external challenges tend to bounce back or achieve substantial increase in performance levels. This study contributes to the literature by proposing resilience as an alternative approach to business model innovation and by providing insight into how firms adjust their business models by altering specific activities in response to both internal and external challenges

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