Embracing Bewilderment: Responding to Technological Disruption in Heterogeneous Market Environments
Khanagha, Saeed Zadeh, Mohammad Taghi Ramezan Mihalache, Oli R Volberda, Henk W
Khanagha, Saeed
Zadeh, Mohammad Taghi Ramezan
Mihalache, Oli R
Volberda, Henk W
Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2018-11
Journal
Journal of Management Studies
Book
Publication Volume
55
Publication Issue
7
Publication Begin page
1079
Publication End page
1121
Publication Number of pages
Collections
Abstract
ABSTRACT In an age of rapid advances in technology, understanding how firms can respond to emergence of disruptive technologies is paramount for survival. While prior research on incumbents’ responses to disruptive technologies assumes demand homogeneity, many firms, including multinational enterprises (MNEs), need to respond to technological disruption in heterogeneous markets. To address this lacuna in our understanding, we study how Ericsson tried to respond to the emergence of Cloud computing, a digital platform technology, across its operations in more than 170 countries. We reveal how incumbents need to match diverging customer demands with a complex innovation process, involving different approaches to experiments and trials, deployment strategy, and ecosystem development. We also find that the success of incumbents’ responses depends on their capability for misalignment, which allows them to manage the inconsistencies in strategic direction, structure, and resource configuration associated with a complex innovation process.
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Keywords
3503 Business Systems In Context, 35 Commerce, Management, Tourism and Services