Strategies for the Disrupted
54 Pages Posted: 19 Jan 2022
Date Written: July 1, 2021
Abstract
Responding to continued calls for a “circumstance-contingent theory of incumbent response” (Christensen, et al, 2018), this paper develops a formal model of incumbent response to disruptive entry. After developing a typology of incumbent responses identified in prior work, the paper incorporates key dimensions of those responses in a unified model. Analysis of the model reveals the contexts in which each response is optimal, showing that a response that is optimal in one context can be counterproductive in another. Joint analysis of responses reveals that incumbents sometimes should focus on one response, while at other times should use responses in concert—even combining them in seemingly counter-intuitive ways. Our results underscore the crucial role of managerial judgment and context in incumbent response to disruptive entry.
Keywords: Disruption, Innovation, Formal Model, Incumbent-Entrant Dynamics, Entry
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