A revised perspective on Disruptive Innovation - Exploring Value, Networks and Business models
Doctoral thesis, 2010

The concept of disruptive innovation has received much attention in recent years. These innovations can be defined as offering an initially lower performance while at the same time bringing some new attributes to the market. This thesis aims to develop and extend existing theory on disruptive innovation with an emphasis on business models and value networks. Previous work in this area has shown that incumbents are often toppled by entrants when disruptive innovations are introduced since these technologies are not initially demanded by the established firms’ customers. Much attention has been devoted to how disruptive innovations emerge in low-end segments and in new markets. However, more knowledge is needed about whether and how they can prosper inside an incumbent firm’s established market segment. Moreover, the challenges related to these innovations have increasingly been framed as related to the business model of firms, but little is known regarding how and why this is the case. Drawing upon data from several case studies, the empirical findings in this dissertation suggest that disruptive innovations may prosper in a segment where incumbents are already present. They do so by compensating the lower traditional performance with some new ways of creating value, for instance by removing labor or changing activities inside the customer’s organization. These findings in turn suggest that this theory needs to focus more on how different performance dimensions create value. Additionally, it is argued that a more nuanced conceptualization of customers and networks is needed. When regarding customers as a collection of actors with different competencies and incentives, it becomes clear that disruptive innovations are problematic even when a firm’s existing customers demand them. These innovations may be incompatible with the different activities and incentives of some actors, which may result in a barrier to adoption. Disruptive innovation can therefore be regarded as a business model challenge in the sense that the new value creation and distribution distorts the firm’s surrounding constellation of actors. Firms need to change their network, but struggle to do so since business models transcend their boundaries and they are therefore forced to act under conditions of interdependence.

business model

Facit

value

Hasselblad

discontinuous

Disruptive innovation

network

Vasa A
Opponent: Professor Richard Lamming, University of Exeter Business School

Author

Christian Sandström

Chalmers, Technology Management and Economics, Innovation and R&D Management

High-end disruptive technologies with an inferior performance

International Journal of Technology Management,; Vol. 56(2011)p. 109-122

Journal article

Disruptive innovation as a business model challenge

IMIT working paper 2010:142. Submitted to Long Range Planning.,; (2010)

Magazine article

Value, Actors and Networks - A revised perspective on disruptive innovation

presented at the DIME conference ‘Organizing for networked innovation’ in Milan, 14-16 April.,; (2010)

Conference contribution

Hasselblad and the shift to digital imaging

IEEE Annals of the History of Computing,; Vol. 33(2010)p. 55-66

Journal article

Managing business model renewal

International Journal of Business and Systems Research,; Vol. 5(2010)p. 461 - 474

Journal article

Exploring Factors Influencing Incumbents’ Response to Disruptive Innovation

Creativity and Innovation Management,; Vol. 18(2009)p. 8-15

Journal article

Subject Categories

Other Social Sciences not elsewhere specified

ISBN

978-91-7385-440-5

Doktorsavhandlingar vid Chalmers tekniska högskola. Ny serie: 3121

Vasa A

Opponent: Professor Richard Lamming, University of Exeter Business School

More information

Created

10/8/2017