How organizations respond to disruptive innovations A qualitative study on organizations’ responses to disruptive innovations

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This study qualitatively examines the organizational responses of established firms to respond appropriately to disruptive innovations. To gain a better understanding of these responses, the central question is: "How does the perceived impact of a disruptive innovation affect the Organizational responses and the Customer loyalty of established companies?" To answer the central research question, the goal was to fill the existing gap in the current literature, as it is unknown how Customer loyalty is influenced and how Organizational responses occur within the hotel industry. The qualitative research was conducted using 9 semi-structured interviews with different hotels in Nijmegen, varying in size, number of employees, and intended target groups. In the analysis, the Organizational responses were assessed based on previous research by Charitou and Markides (2003). This study shows that the dependence of established hotels on booking engines causes them to operate ambidextrously. On the one hand, they focus on investing and exploiting the traditional business model. On the other hand, they embrace and adopt the disruptive business model of the booking engines. On the one hand, focusing on the traditional business model benefits customer loyalty. On the other hand, focusing on the disruptive business model does not benefit customer loyalty. The latter can be explained when established hotels embrace the booking engines too much, are limited in their advertising and personal contact with the customers, and build less brand awareness.
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