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Intensity, timeliness, and success of incumbent response to technological discontinuities: a synthesis and empirical investigation
Authors:Simon Bockmühl  Andreas König  Albrecht Enders  Harald Hungenberg  Jonas Puck
Institution:(1) Friedrich-Alexander-University Erlangen-Nuremberg, Lange Gasse 20, 90403 Nuremberg, Germany;(2) IMD International, 23, Ch. de Bellerive, 1001 Lausanne, Switzerland;(3) Institute for International Business, Vienna University of Economics and Business, Althanstra?e 51, 1090 Wien, Austria;;
Abstract:The extant literature highlights numerous different factors influencing the timeliness and intensity of incumbent response to discontinuous technological change. However, this literature has so far not been synthesized and is therefore limited in its analytical, predictive, and normative power. We develop a comprehensive model of incumbent response that organizes different explanatory factors into the three distinct dimensions of (1) identification and interpretation, (2) decision making, and (3) organizational implementation. We also conceptualize how response intensity and timeliness affect business performance in new technological domains. We test the model against data from 320 firms from the German dental lab industry, finding substantial support for the majority of our hypotheses. This study offers unique empirical insight in observing that cognitive constructs such as framing and management flexibility have the strongest impact on both intensity and timeliness of incumbent response to technological, and thus, strategic discontinuities. Together, our findings have important implications for both theory and practice.
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