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Disruptive innovation, managerial cognition, and technology competition outcomes

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  • Vecchiato, Riccardo

Abstract

In this paper we explore why incumbent firms fail to identify new markets in the face of disruptive technologies. We cross research on disruptive innovation with research on managerial cognition and we focus on the role of managerial beliefs about customer needs in directing the search for new markets and product features. We show that a primary reason why incumbents lose their leadership is the inability to recognize either the rising ‘social’ market, where customers use products for fulfilling their need for friendship, or the ‘esteem’ market, where customers use products for fulfilling their need for achievement. We then apply our emerging conceptual framework to the case of the smartphone industry and the ongoing rivalry among operating systems. We thus try to advance the disruptive innovation theory with regard to both the explanation and the anticipation of technology competition outcomes.

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  • Vecchiato, Riccardo, 2017. "Disruptive innovation, managerial cognition, and technology competition outcomes," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 116-128.
    • Handle: RePEc:eee:tefoso:v:116:y:2017:i:c:p:116-128
    DOI: 10.1016/j.techfore.2016.10.068
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    6. Bingqiang Li & Lei Huang, 2019. "The Effect of Incremental Innovation and Disruptive Innovation on the Sustainable Development of Manufacturing in China," SAGE Open, , vol. 9(1), pages 21582440198, February.
    7. Benzidia, Smaïl & Luca, Ruxandra Monica & Boiko, Sergiy, 2021. "Disruptive innovation, business models, and encroachment strategies: Buyer's perspective on electric and hybrid vehicle technology," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
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    13. Mario Coccia, 2020. "Cyclical phenomena in technological change," Papers 2010.03168, arXiv.org, revised Oct 2020.
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    15. Singh, Pallavi & Brown, David M. & Chelekis, Jessica & Apostolidis, Chrysostomos & Dey, Bidit L., 2022. "Sustainability in the beer and pub industry during the COVID-19 period: An emerging new normal," Journal of Business Research, Elsevier, vol. 141(C), pages 656-672.
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    17. Zhou, Jianghua & Li, Jizhen & Jiao, Hao & Qiu, Hang & Liu, Zixu, 2020. "The more funding the better? The moderating role of knowledge stock on the effects of different government-funded research projects on firm innovation in Chinese cultural and creative industries," Technovation, Elsevier, vol. 92.
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