|標題:||Reading Market Signal for Disruptive Innovation|
Reading Market Signal for Disruptive Innovation
|關鍵字:||dirsruptive innovation;market signal;dirsruptive innovation;market signal|
As the speed of technology development increases, it becomes more and more difficult for a firm to keep its market position and update products with the same pace. The competition becomes very tough especially for incumbent firms. When an incumbent firm is facing disruptive innovation historical evidence shows that it cannot handle it within the organization. Usually it sets up a separate entity for handling disruptive innovation. This study aims to help incumbent firms handle disruptive innovation within the organization by proposing a potential market signal for them to switch from incumbent technology to disruptive one. If there is a way for incumbent firms to read this market signal before disruption dominates then it can not only save its market position but also release it from non-necessary waste allied with opening a new branch or establishing a new company. This study applies orthogonality theory to propose a market signal for a disruptive technology. The theory leads to our proposal that when the slopes of incumbent technology and disruptive technology become orthogonal it is a market signal for an incumbent firm to focus on disruptive technology. Three pairs of incumbent-disruptive technology were investigated for the market signal. The findings show that an orthogonal point occurs around an intersection point, earlier than an intersection point for two out of three technologies. It suggests that orthogonal point is more sufficient market signal than intersection.
|Appears in Collections:||Thesis|
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