Disruptive Firms and Industrial Change

Journal of Economic and Social Thought, vol. 4, n. 4, pp. 437-450

24 Pages Posted: 17 Jan 2018

See all articles by Mario Coccia

Mario Coccia

National Research Council of Italy (CNR)

Date Written: January 11, 2018

Abstract

This study proposes the concept of disruptive firms: they are firms with market leadership that deliberate introduce new and improved generations of durable goods that destroy, directly or indirectly, similar products present in markets in order to support their competitive advantage and/or market leadership. These disruptive firms support technological and industrial change and induce consumers to buy new products to adapt to new socioeconomic environment. In particular, disruptive firms generate and spread path-breaking innovations in order to achieve and sustain the goal of a (temporary) profit monopoly. This organizational behaviour and strategy of disruptive firms support technological change. This study can be useful for bringing a new perspective to explain and generalize one of the determinants that generates technological and industrial change. Overall, then this study suggests that one of the general sources of technological change is due to disruptive firms (subjects), rather than disruptive technologies (objects), that generate market shifts in a Schumpeterian world of innovation-based competition.

Keywords: Disruptive Firms, R&D Management, Competitive Advantage, Industrial Change

JEL Classification: L20; O32; O33

Suggested Citation

Coccia, Mario, Disruptive Firms and Industrial Change (January 11, 2018). Journal of Economic and Social Thought, vol. 4, n. 4, pp. 437-450, Available at SSRN: https://ssrn.com/abstract=3100039

Mario Coccia (Contact Author)

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