Embracing Bewilderment: Responding to Technological Disruption in Heterogeneous Market Environments

43 Pages Posted: 19 Oct 2018

See all articles by Saeed Khanagha

Saeed Khanagha

Erasmus University Rotterdam (EUR)

Mohammad Taghi Ramezan Zadeh

Erasmus University Rotterdam (EUR)

Oli R. Mihalache

Wilfrid Laurier University

H. W. Volberda

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Date Written: November 2018

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.

Keywords: heterogeneous markets, misalignment capability, multinational enterprises, strategic contradictions, technological disruption

Suggested Citation

Khanagha, Saeed and Ramezan Zadeh, Mohammad Taghi and Mihalache, Oli R. and Volberda, Henk W., Embracing Bewilderment: Responding to Technological Disruption in Heterogeneous Market Environments (November 2018). Journal of Management Studies, Vol. 55, Issue 7, pp. 1079-1121, 2018. Available at SSRN: https://ssrn.com/abstract=3268868 or http://dx.doi.org/10.1111/joms.12348

Saeed Khanagha (Contact Author)

Erasmus University Rotterdam (EUR)

No Address Available, Zuid-Holland

Mohammad Taghi Ramezan Zadeh

Erasmus University Rotterdam (EUR)

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Oli R. Mihalache

Wilfrid Laurier University

75 University Ave W
waterloo, N2L 3C5
Canada

Henk W. Volberda

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31 10 408 2761 (Phone)
+31 10 408 9013 (Fax)

HOME PAGE: http://www.eur.nl/fbk/dep/dep4/faculty_members/Henk_Volberda

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
63
PlumX Metrics