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The management of open value creation, 47th Hawaii International Conference on System Sciences, Our findings suggest that the DI process occurs within an initiation phase, a niche market phase, and a mainstream market phase, with 1 the perception and expectations of the opportunity and the entrant's innovation, 2 the entrant's strategy, and 3 the utilization of enabling technologies and factor markets shaping the dynamics characterizing each phase.
We articulate these findings into a process model revealing a proliferation of alternative paths dissuading from disruption, which we understand as missed opportunities of DI. Thus, to remain on a disruptive path requires a purposeful choice of actions towards achieving a continuous fit with the environment to disrupt the mainstream incumbents.
By understanding DI as a dynamic progression, we propose the process in terms of a the timing of entry and underlying processes that influences b the synchronization of events and actions and is shaped by c the adaptability of strategic actions. We thus develop the theory of DI by applying a process view, integrating a dynamic dimension to the previously linear understanding of the DI process. We conclude by identifying areas for research to further our understanding of DI as a process. Bower and Christensen observed that incumbents fail when innovations introduce a different performance relative to the existing mainstream market offers.
The business model in which the technology is deployed paralyses the incumbent as its profit model and other investments make it financially unattractive to pursue the DI Christensen, We understand a business model as describing the architecture of value creation, delivery and a firm's capture mechanisms Teece, The entrant then improves the innovation's performance over time, unaffected by the incumbent, who overlooks this potential competition.
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To increase the phenomenon's manageability, authors have focused on different process steps, early identification, and ex ante conditions e. We propose considering DI dynamically in terms of changes and interconnection of events and actions, focusing on the process rather than outcomes Langley, We understand events as occurrences or conditions within the environment that shape the disruptive path, whereas actions are activities undertaken to manage disruption Langley, ; Tsoukas, An incumbent's action might be perceived as an event by the entrant and vice versa.
We acknowledge time as an integrative component in addressing changes within a dynamic context. Hence, details become identifiable as to why, when and how a DI occurs. We argue that conceptualizing from a process view adds a new dynamic dimension and clarifies how disruption emerges, develops and grows. To this end, we use the extant literature to identify the events and actions that lead to the emergence of DIs, their development, growth, and to market disruption, and subsequently identify new avenues for research.
Previous studies on DI focused on early signals and ex ante conditions at different stages of the process, providing a vast amount of literature with scattered findings. We posit that a systematic analysis and integration of this literature is required to identify the interconnection of events and actions i.
We follow Tranfield et al. The review panel consisted of the three authors assessing the scope, relevance and size of the literature to delimit the subject area Tranfield et al. A clear scope provided a basis for methodology adjustments and conceptual discussions of the research question and the significance of the study.
The panel defined the methodological protocol including keywords, perspective of analysis, and inclusion and exclusion criteria of papers to minimize bias in the literature review Tranfield et al. As the incorporation of synonyms e. This search yielded papers. The subsequent search used keywords identified in the first step. We found that the DI definition includes disruptive technology, DI, and business model i. The latter was included due to the linkage between technology and business model in the DI process.
The search was narrowed to title, abstract and associated keywords, limited to — and the fields of Management, Business, Operations Research Management Science, and Social Sciences Interdisciplinary. Inclusion of other fields delivered inaccurate results. To select the papers, we used two inclusion criteria: a papers had to follow Christensen's understanding of disruptive technology Christensen, or DI Christensen et al.
The latter criterion included papers that identified relevant events and actions in the process without applying a process view. We assessed the 95 papers based on abstract and introduction. This yielded a final sample of 54 papers included in this systematic literature review see Appendix A. The content analysis identified how the extant literature describes the interconnection of events and actions within the DI process. Once the criteria were established, the coding was facilitated by the software NVivo.
Within the first coding cycle, we identified the relevant data segments to be coded Schreier, This involved identifying sentences in each paper that provide appropriate insights, and coding the understandings of disruptiveness , occurrence and events and actions. We classified disruptiveness into disruptive technology , disruptive business model and disruptive innovation.
Within occurrence, we identified the DI's emergence , its evolution and its end. Events and actions was coded into enabling or constraining events and actions. This included comparison between codes, quality checks, relations embedded in the data and coherence. Data belonging to two or more codes were adjusted and relations were identified Schreier, Within disruptiveness, it was identified that papers referred to the integration of a disruptive technology within a business model.
Within this process, several disruptive characteristics were proposed, requiring strategic actions. For the occurrence of DI, the phases of initiation implementing technological developments , niche market launch of the business model and subsequent development , and mainstream market commercialization of the business model to mainstream customers were defined. Further, three synchronization periods between technological development and business model development, business model development and niche market, and niche market and mainstream market were identified.
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These periods refer to the synchronization of events and actions during specific periods in time that were identified as critical for the DI's progression. Within events and actions, the identified enablers and constraints were categorized into perception and expectation , utilization of enabling technologies and factor markets , and entrant's strategy. Our findings show that disruptiveness is characterized by the development of disruptive technologies and their integration within business models.
These events are interconnected and constitute an essential part of the DI process. The occurrence of DI in the extant literature is described as a sequence of steps with a focus on early signals and ex ante factors e. Our analysis confirms that scholars rarely acknowledge the underlying processes of change to study DI over time from a process view.
However, the analysis of the sequence of steps in the extant literature provides valuable insights for understanding the DI's emergence, development, growth and disruption. We found that most authors describe: 1 an initiation phase , in which a disruptive technology emerges and is incorporated in a business model emerge ; 2 a niche market phase , in which the business model grows and develops grow ; and 3 a mainstream market phase , which describes the innovation's eventual disruptive effect in an established market grow and end.
From a process view, we focus on the underlying dynamics within each phase. Because of these dynamics, we further propose the term potential DI during the initiation and niche market phases as different paths can be pursued. This stresses that a focus on the dynamics occurring within the DI process is valuable and necessary in further understanding and managing the phenomenon. The initiation phase describes the emergence of a technology and its subsequent integration within a business model.
These emerging technologies can be disruptive if they enable the initiation of the DI through integration within a business model that introduces special disruptive characteristics Chen et al. A DI introduces an offering that is generally cheaper, easier to use, and more convenient relative to mainstream market offerings and which underperforms on the attributes valued by mainstream customers. Enabling technologies and factor markets are understood as existing resources that allow the entrant to further develop the disruptive characteristics without heavy initial investment.
Without these enabling technologies and factor markets, chances increase that the entrant runs out of resources and fails to commercialize its offering into the niche market in a timely enough manner to achieve disruption. These niche customers are unattractive to incumbents as the niche is without attractive sales potential. Thus, the commercialization in the niche market requires an overshooting of niche customers' demands by the incumbents' offerings. When niche customers experience a gap, a vacuum emerges and the entrant should take advantage of it Christensen et al.
If the innovation is successfully launched into the niche market, the entrant subsequently improves the innovation along the new and other performance attributes valued by mainstream customers. Through the development of performance attributes, the innovation appeals to an increasing number of customers, which requires a continuous extension of the entrant's value network Ansari et al.
The entrant's actions gain relevance to strategically influence the synchronization of multiple events, e. If the entrant improves the innovation's performance attributes, mainstream customers eventually begin to purchase the offering and the innovation continues on the disruptive path.
Here, the DI begins to displace the incumbents' business model on the mainstream market and disruption occurs Adner, For an undisturbed entry into the mainstream market, incumbents need to overshoot the performance that mainstream customers can utilize and thereby open a window for disruption Christensen et al. However, during the mainstream market phase , some reaction from the incumbent and other actors can be expected.
Ansari et al. Our findings suggest that the disruptive path is manageable by the entrant through synchronizing actions with events, according to the disruptive characteristics of their offering. Along the three phases, asynchronies need to be identified and managed in a timely manner by the entrant, e. Within the process, events occur that can be strategically managed by the actors.
Actors are the protagonist entrant driving the innovation along a disruptive path and the antagonist incumbent reacting to the protagonist's actions, eventually aiming to dissuade the innovation from the disruptive path. Both actors are necessary for a DI and the path of each is influenced by the actions of the other. We found that the events and actions result from and are shaped by: 1 the perception and expectation of the opportunity and the entrant's innovation, 2 the entrant's strategy , and 3 the utilization of enabling technologies and factor markets.
Perception and expectation refer to how the entrant and other niche and mainstream market actors regard the opportunities surrounding their markets and the entrant's innovation; this affects the behaviour of the actors involved and influences the entrant's management of the innovation. It is essential at certain times that the incumbent does not perceive the new offering either as an opportunity or as a threat and remains inactive.
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Dewald and Bowen identified that incumbents take little or no action when they perceive little or no threat from the entrant's business model and further anticipate little or no opportunity. Our findings show that the entrant can strategically manage the innovation over time along a disruptive path. We understand the entrant's strategy as a purposeful choice of actions towards achieving a continuous fit with the environment to disrupt the mainstream incumbents.
The entrant continuously reconfigures the innovation by scanning the local and distant environment for a timely synchronization of events and underlying processes. Bucher et al. Previous research reflects the importance of being aware of the asynchronies within the customers' demand trajectories Adner, ; Bucher et al. A vacuum in the niche market should be exploited through a targeted value proposition Christensen et al. Please fill in a complete birthday Enter a valid birthday.
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