Abstract:
Drawing on a longitudinal qualitative study of five smartphone OEM’s this study examines how a company can successfully deal with the competing demands of early entering and flexibility. A tension which companies face when a disruptive technological innovation arises, putting them in front of the disruptive technology paradox. In analyzing how companies can address this paradox different sets of capabilities in line with the dynamic capabilities model of sensing, seizing and reconfiguring of Teece (2007) have been revealed. Similar to the work of Birkinshaw et al. (2016) a slight differentiation of the dynamic capabilities model is proposed. Leadership fit and an open culture namely have been identified as higher-order reconfiguring capabilities allowing the lower-order capabilities of continuous sensing and opportunity seizing to transpire. Next, operations management capabilities are stressed which support both the lower-order capabilities of continuous sensing and opportunity seizing. The interrelations of these capabilities enable a company to create radical innovations in periods of discontinuous change, incremental innovations in maturing markets and have a dedicated strategy to gain market share fast as well as retain it. Innovation and dedicated strategizing can be seen as paradox solvers enabling a company to cope with the competing demands of early entering and flexibility to deliver superior long term performance, addressing the disruptive technology paradox.
