Session 234

Incumbent Response to Foreign Entry and to Disruptive Innovation

Track I

Date: Tuesday, October 9, 2012


Time: 14:15 – 15:30


Room: Club C

Session Chair:

  • Dimo Ringov, ESADE Business School

Title: Differentiation and Compliance in Changing Institutional Contexts: Oak Barrel Diffusion in the Italian Wine Industry


  • Marco Bottura, EMLYON Business School
  • Bernard Forgues, EMLYON Business School
  • Raffaele Corrado, University of Bologna
  • Vincenza Odorici, University of Bologna

Abstract: Highly institutionalized fields reduce practice variation and favor the status quo. New entrants can choose to mimic incumbents, thereby gaining legitimacy, or to differentiate in the hope of shaking out competitive positions. Performance outcomes of such decisions are moderated by the degree of institutionalization of the industry. Our analysis of the Italian wine industry highlights that the institutional transition from quantity to quality production significantly determines new entrants' strategies. Their endorsement of a new, disruptive technology, in such a mediated market depends on the phase of institutional transition. Incumbents leverage independent winemakers knowledge to catch up and protect their advantages.

Title: The Gates are Still Closed, but the Fences are Down


  • Bente R. Lowendahl, BI Norwegian Business School
  • Øivind Revang, BI Norwegian School of Management

Abstract: We explore the changing roles of traditional gatekeepers in the music, book publishing, and TV broadcasting industries, as the result of transformational changes in response to digitalization. We show that the first wave of effects typically introduces e-commerce, and threatens the roles of traditional distributors. The second wave of effects is much more profound, and fundamentally alters the value creation processes of entire industries. We contend that the most successful traditional actors in these industries are likely to experience the most difficulties in reacting to these changes, precisely because their core competences and other resources, their value creating processes, and their dominant logics were so well adjusted to the old competitive regimes. They protect “the Gates,” and do not realize that the Fences are down.

Title: Typologies of Incumbent Response to Disruptive Innovation: Why They Do What They Do


  • Oleksiy Osiyevskyy, Northeastern University
  • Jim Dewald, University of Calgary

Abstract: Sixteen years ago, Christensen and Bower (1996) published their initial work on disruptive innovations, foreseeing the startling impact technology-based disruptions would have in a multitude of industries. Initial studies found that incumbent firms respond by pursuing incremental innovation, often at their peril. Still, there has been little advancement in addressing the options available to incumbent firms and managers facing disruptive innovations. We apply deductive reasoning to this important gap, focusing on incumbents facing business model change in response to disruptions. The research identifies factors that lead to observable behavior and provides normative recommendations for choosing the optimal strategy. Our framework applies classic strategic analysis in pursuit of fit among firm capabilities, organizational and resource slack, external customer propensity, and legitimacy of the disruption.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 274: Knowledge Foundations: A Conversation with Robert Grant about the Knowledge Based View
Sun: 09:30 – 10:45
Session 273: Big Data, Knowledge and Innovation
Sun: 11:15 – 12:30
Session 275: The Changing Nature of Innovation in Emerging Economies
Sun: 15:15 – 16:30
Session 225: Intellectual Property Rights
Session 229: Structure and Innovation
Mon: 08:00 – 09:15
Session 223: Individuals, Teams and Innovation
Session 242: R&D
Mon: 09:30 – 10:45
Session 140: Knowledge Management & Knowledge Structures: Who knows?
Session 226: Technology
Session 235: Learning
Mon: 13:30 – 14:45
Session 222: Integrating Knowledge about Knowledge Integration
Session 227: Knowledge Transfer and Replication
Mon: 16:30 – 17:45
Session 224: Absorptive Capacity
Session 236: Innovation and Performance
Tue: 08:00 – 09:15
Session 230: Ties, Networks, and Innovation
Session 237: Open Innovation
Tue: 11:00 – 12:15
Session 228: Exploration
Session 231: Alliance and Transfer
Tue: 14:15 – 15:30
Session 234: Incumbent Response to Foreign Entry and to Disruptive Innovation
Session 240: Capabilities
Tue: 15:45 – 17:00
Session 233: Structure and Transfer
Session 243: Entrepreneurs, Ventures, and Innovation
Tue: 17:30 – 18:45
Session 232: Innovation and Transfer
Session 239: Ambidexterity / Exploration and Exploitation
Session 244: Knowledge Management

Strategic Management Society