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Disruptive innovation through a dynamic capabilities lens: an exploration of the auto component sector in India

Author

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  • Deepak Pandit
  • Maheshkumar P. Joshi
  • Rajen K. Gupta
  • Arun Sahay

Abstract

Innovation has gained momentum for the development; spread; and survival of auto industrial firms in India. In this paper; we study the less-explored aspect of organisational response focusing on discontinuous innovation. The Indian auto sector requires a tool for long-term market dominance; particularly owing to the rapid change in the business environment. This can be achieved through a special kind of discontinuous innovation known as disruptive innovation (DI). We further affirm how developing DI is facilitated by the firm's dynamic capability (DC); to substantiate our claims; we develop and utilise a survey instrument to test a hypothesised model with responses from various firms affiliated with the Indian auto component industry. Our findings confirm the positive roles of DC and research and development (R%D) expenditure as antecedents to DI. We further conduct exploratory analysis to study factors such as R%D and environmental turbulence as moderators of the DC-DI relationship. We offer the following contributions: the operationalisation of DC and DI for the Indian context, a sector specific study and critical results pertaining to moderating role of R%D and environmental turbulence on the positive DC-DI relationship.

Suggested Citation

  • Deepak Pandit & Maheshkumar P. Joshi & Rajen K. Gupta & Arun Sahay, 2017. "Disruptive innovation through a dynamic capabilities lens: an exploration of the auto component sector in India," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 14(1), pages 109-130.
    • Handle: RePEc:ids:ijicbm:v:14:y:2017:i:1:p:109-130
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    Citations

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    Cited by:

    1. Issa, Helmi & Jabbouri, Rachid & Palmer, Mark, 2022. "An artificial intelligence (AI)-readiness and adoption framework for AgriTech firms," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    2. Pandit, Deepak & Joshi, Maheshkumar P. & Sahay, Arun & Gupta, Rajen K., 2018. "Disruptive innovation and dynamic capabilities in emerging economies: Evidence from the Indian automotive sector," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 323-329.
    3. Issa, Helmi & Jabbouri, Rachid & Palmer, Mark, 2021. "An Artificial Intelligence (Ai)-Readiness and Adoption Framework for Agritech Firms," QBS Working Paper Series 271255, Queen's University Belfast, Queen's Business School.

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