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Importance of CEO Attention in Influencing Incumbent Responses to Disruptive Innovation

Author

Listed:
  • Heesun Gha

    (Department of International Studies and Business, Ewha Womans University, Seoul 03760, Republic of Korea)

  • Min Young Kim

    (Department of Psychology and Business, Ewha Womans University, Seoul 03760, Republic of Korea)

  • Hyeon Jin Ro

    (Department of Life Sciences and Business, Ewha Womans University, Seoul 03760, Republic of Korea)

  • Seungho Choi

    (Ewha Schoool of Business, Ewha Womans University, Seoul 03760, Republic of Korea)

Abstract

This study investigates incumbent firm responses to disruptive innovation in the rapidly evolving South Korean retail industry. The study explores the factors behind an incumbent firm’s decision-making processes when responding to disruptive innovation and examines the reasons behind varied incumbent responses. It investigates the agents that influence a firm’s decision by conducting the qualitative case study of a South Korean retail giant, Lotte. By collecting archival data from various sources, this paper was able to analyze different interviews and statements of the chief executive officer (CEO). From the analysis, it was determined that the firm’s overall actions were aligned with the CEO’s assertions. Thus, this paper asserts that Lotte’s response to disruptive innovation was directly influenced by the CEO’s attention. The results of this study further add to the discourse of disruptive innovation by highlighting the importance of CEO discretion in deciding a firm’s direction and by further emphasizing the relationship between managerial leadership and innovation.

Suggested Citation

  • Heesun Gha & Min Young Kim & Hyeon Jin Ro & Seungho Choi, 2023. "Importance of CEO Attention in Influencing Incumbent Responses to Disruptive Innovation," Administrative Sciences, MDPI, vol. 13(6), pages 1-20, May.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:6:p:142-:d:1158547
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    References listed on IDEAS

    as
    1. Zach, Florian J. & Nicolau, Juan L. & Sharma, Abhinav, 2020. "Disruptive innovation, innovation adoption and incumbent market value: The case of Airbnb," Annals of Tourism Research, Elsevier, vol. 80(C).
    2. Seung‐Rok Park & Ky‐hyang Yuhn, 2012. "Has the Koreanchaebolmodel succeeded?," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 39(2), pages 260-274, May.
    3. Seung‐Rok Park & Ky‐hyang Yuhn, 2012. "Has the Koreanchaebolmodel succeeded?," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 39(2), pages 260-274, May.
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    Cited by:

    1. Chen, Fu Chen & Indiran, Logaiswari Indiran & Abdul Kohar, Umar Haiyat Abdul Kohar, 2023. "Disruptive Innovation (DI) and Chief Executive Officer(CEO): A synthetic literature review," MPRA Paper 119321, University Library of Munich, Germany, revised 26 Oct 2023.

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