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Exploring the relationship between incumbency and radical innovation: the case of business to consumer e-commerce applications

Author

Listed:
  • Davide Chiaroni
  • Vittorio Chiesa
  • Federico Frattini
  • Luca Turba

Abstract

The purpose of the paper is to investigate the factors underlying the difficulty that incumbent firms encounter, in comparison with new entrants, in the development and exploitation of a radical innovation, a phenomenon also known as 'incumbent's curse'. The paper shows that incumbent's curse is determined by different factors (organisational, strategic and economic), depending on the dimensions of radicalness that characterise the innovation. Moreover, it reports the results of an exploratory study on the adoption of B2C e-commerce by Italian firms, designed to investigate if and how the factors underlying incumbent's curse have different impacts along the cycle of adoption of the innovation. The analysis suggests that the performance of incumbents in the first months that follow adoption is significantly influenced by their organisational characteristics. If these are not adequate to the innovation being adopted, incumbents are likely to be outperformed by new entrants and this initial drawback is difficult to recover as time passes.

Suggested Citation

  • Davide Chiaroni & Vittorio Chiesa & Federico Frattini & Luca Turba, 2010. "Exploring the relationship between incumbency and radical innovation: the case of business to consumer e-commerce applications," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 11(4), pages 419-439.
    • Handle: RePEc:ids:ijeima:v:11:y:2010:i:4:p:419-439
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    Cited by:

    1. Messeni Petruzzelli, Antonio & Ardito, Lorenzo & Savino, Tommaso, 2018. "Maturity of knowledge inputs and innovation value: The moderating effect of firm age and size," Journal of Business Research, Elsevier, vol. 86(C), pages 190-201.
    2. Asif Khan & Sughra Bibi & Jiaying Lyu & Achille Claudio Garavelli & Pierpaolo Pontrandolfo & Maria de Angeles Perez Sanchez, 2020. "Uncovering Innovativeness in Spanish Tourism Firms: The Role of Transformational Leadership, OCB, Firm Size, and Age," Sustainability, MDPI, vol. 12(10), pages 1-26, May.

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