Disruptive change. When trying harder is part of the problem

Area of Science:

• Business Strategy
• Organizational Behavior
• Innovation Management

Background:

• Managerial perception of market disruptions significantly impacts response strategies.
• Viewing disruptions as threats can lead to overreaction, while seeing them as opportunities may result in under-resourcing.
• Dichotomous thinking (threat vs. opportunity) can be detrimental to effective strategic response.

Purpose of the Study:

• To explore a more balanced approach to framing disruptive innovations.
• To provide insights into how organizations can effectively manage the dual nature of disruptive challenges.
• To guide executives in developing adaptive strategies for innovation.

Main Methods:

• Analysis of strategic responses to market disruptions.
• Examination of organizational framing and its impact on resource allocation and market development.
• Identification of key practices employed by successful companies in managing disruptive innovation.

Main Results:

• Successful companies dynamically reframe disruptive innovations based on context.
• Disruptive innovations are treated as threats during resource allocation and as opportunities during market development.
• Effective reframing requires structural and process adjustments, including separate ventures and staged funding.

Conclusions:

• A balanced approach to framing disruptive innovations is crucial for success.
• The ability to adapt framing over time allows organizations to leverage both the urgency of threats and the creativity of opportunities.
• Implementing specific organizational structures and processes facilitates successful management of disruptive innovation.