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Disruptive firms and industrial change

Author

Listed:
  • Mario COCCIA

    (Arizona State University, Interdisciplinary Science and Technology Building 1 (ISBT1) 550 E. Orange Street, Tempe- AZ 85287-4804 USA.)

Abstract

This study proposes the concept of disruptive firms: they are firms with market leadership that deliberate introduce new and improved generations of durable goods that destroy, directly or indirectly, similar products present in markets in order to support their competitive advantage and/or market leadership. These disruptive firms support technological and industrial change and induce consumers to buy new products to adapt to new socioeconomic environment. In particular, disruptive firms generate and spread path-breaking innovations in order to achieve and sustain the goal of a (temporary) profit monopoly. This organizational behaviour and strategy of disruptive firms support technological change. This study can be useful for bringing a new perspective to explain and generalize one of the determinants that generates technological and industrial change. Overall, then this study suggests that one of the general sources of technological change is due to disruptive firms (subjects), rather than disruptive technologies (objects), that generate market shifts in a Schumpeterian world of innovation-based competition.

Suggested Citation

  • Mario COCCIA, 2017. "Disruptive firms and industrial change," Journal of Economic and Social Thought, EconSciences Journals, vol. 4(4), pages 437-450, December.
    • Handle: RePEc:cvv:journ3:v:4:y:2017:i:4:p:437-450
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    Keywords

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    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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