Dynamic Commercialization Strategies for Disruptive Technologies: Evidence from the Speech Recognition Industry

41 Pages Posted: 15 Dec 2013 Last revised: 28 May 2014

See all articles by Matt Marx

Matt Marx

Boston University Questrom School of Business

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

David H. Hsu

University of Pennsylvania - Management Department

Multiple version iconThere are 2 versions of this paper

Date Written: May 27, 2014

Abstract

When startup innovation involves a potentially disruptive technology – initially lagging in the predominant performance metric, but with a potentially favorable trajectory of improvement – incumbents may be wary of engaging in cooperative commercialization with the startup. While the prevailing theory of disruptive innovation suggests that this will lead to (exclusively) competitive commercialization and the eventual replacement of incumbents, we consider a dynamic strategy involving product market entry before switching to a cooperative commercialization strategy. Empirical evidence from the automated speech recognition industry from 1952-2010 confirms our main hypothesis.

Keywords: Technology commercialization strategy; disruptive innovation

JEL Classification: O32

Suggested Citation

Marx, Matt and Gans, Joshua S. and Hsu, David H., Dynamic Commercialization Strategies for Disruptive Technologies: Evidence from the Speech Recognition Industry (May 27, 2014). Rotman School of Management Working Paper No. 2367836. Available at SSRN: https://ssrn.com/abstract=2367836 or http://dx.doi.org/10.2139/ssrn.2367836

Matt Marx

Boston University Questrom School of Business ( email )

595 Commonwealth Ave
Boston, MA 02466
United States

Joshua S. Gans (Contact Author)

University of Toronto - Rotman School of Management ( email )

Canada

HOME PAGE: http://www.joshuagans.com

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

David H. Hsu

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-746-0125 (Phone)
215-898-0401 (Fax)

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