Search query: Technological Discontinuities and Organizational Environments

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abstract: Investigates the patterns of technological evolution and their impact on environmental conditions. Seven hypotheses are offered in order to demonstrate that technology is a central force in shaping the environments within which organizations operate. These hypotheses are: (1) technological change within a product class will be characterized by long periods of incremental change punctuated by discontinuities; (1a) technological discontinuities are either competence enhancing (build on existing skills and know how) or competence destroying (require fundamentally new skills and competences) (2) the locus of innovation will differ for competence destroying and competence enhancing technological changes. Competence destroying discontinuities will be initiated by new entrants, while competence enhancing discontinuities will be initiated by existing firms; (3) competitive uncertainty will be higher after a technological discontinuity than before discontinuity; (4) environmental munificence (i.e. resource availability and support for growth) will be higher after a technological discontinuity than before the discontinuity; (5) competence enhancing discontinuities will be associated with decreased entry to exit ratios and decreased interfirm sales variability (thus strengthening product leaders and increasing barriers to entry) These patterns will be reversed for competence destroying discontinuities; (6) successive competence enhancing discontinuities will be associated with smaller increases in uncertainty and munificence; and (7) those organizations that initiate major technological innovations will have higher growth rates than other firms in the product class. Data were collected from U.S. firms in three product classes, domestic scheduled passenger airline transport, Portland cement manufacture, and minicomputer manufacture, from the year of the niche market's inception through 1980. Results indicate that after the three niche openings, there were six competence enhancing technological discontinuities and two competence destroying discontinuities in total. Each of these discontinuities had a far greater impact on a key measure of cost or performance than more incremental technological events. In addition, except for the period following the introduction of semiconductor memory in minicomputers, the ability of experienced industry observers to predict demand following technological disruptions was far worse than prior to the disruption. Demand growth following the discontinuity was significantly higher than it was immediately prior to the discontinuity, which had an enormous impact on product class demand. Also, the ratio of entries to exits was higher in each of the five years before a competence enhancing discontinuity than during the five subsequent years, though none of the differences is statistically significant. Though market variability in sales growth was expected, it was found that some firms' sales grew explosively while other firms experienced sales declines. It is also suggested that as technology matures, successive competence enhancing discontinuities increase both uncertainty and munificence, but not as much as those discontinuities that preceded them in establishing the product class. Finally, early adopters of technology were found to experience more growth than other firms. Using three different product types, with a wide range of years from inception, it is shown that technology does evolve through long periods of incremental change punctuated by relatively rare innovations that radically improve the state of the art. Although these incidences of change are rare, they stand out clearly and have significantly altered competitive environments. (SFL)
author_names: Michael L Tushman

Philip Anderson
title: Technological Discontinuities and Organizational Environments
year: 1986

abstract: Economists and organization theorists have asked which factors are linked to the rate at which firms exit an industry. Yet little research has linked exit rates to changes over time in the key dimensions which characterize an industry's environment. This study examines linkages between exit rates and changing levels of uncertainty, munificence and complexity in an industry. A longitudinal study of the American cement (1888 1980) and minicomputer (1958 82) industries reveals that uncertainty is the key environmental dimension associated with organizational mortality. Controlling for ecological and macroeconomic conditions, exit rates are associated with uncertainty, but not complexity or munificence. The greater the uncertainty, the higher the exit rates. Two kinds of uncertainty create hazardous environmental conditions: unpredictable changes in demand and eras of ferment bounded by technological discontinuities and dominant designs. Our results indicate that while organizations can deal with different levels of economic munificence and complexity, uncertainty is a significantly more lethal characteristic of organizational environments. The results support Schumpeterian perspectives linking industry turnover to "waves of creative destruction" but suggest more broadly that an organization's ability to cope with uncertainty is a key determinant of its life chances. Copyright 2001 by Oxford University Press.
author_names: Philip Anderson

Michael L Tushman
title: Organizational Environments and Industry Exit: the Effects of Uncertainty, Munificence and Complexity
year: 2001

abstract: The word "virtual" describes work that spans one or more discontinuities. The term has been applied to work where people are in discontinuous physical work locations, where work is done in discontinuous time frames, where people have discontinuous organizational affiliations (Watson Manheim, Crowston Chudoba (2002)
author_names: Jennifer Coady

Larry Stapleton

Brian Foley
title: 'Teamwork' A Combined Methodological and Technological Solution for E Working Environments
year: 2002

abstract: Contents: Acknowledgements Introduction Michael J. Leiblein and Arvids A. Ziedonis PART I TYPES OF INNOVATION 1. Michael L. Tushman and Philip Anderson (1986) 'Technological Discontinuities and Organizational Environments' 2. Rebecca M. Henderson and Kim B. Clark (1990) 'Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms' 3. Clayton M. Christensen and Joseph L. Bower (1996) 'Customer Power, Strategic Investment, and the Failure of Leading Firms' PART II CAPTURING VALUE FROM INNOVATION 4. David J. Teece (1986) 'Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing, and Public Policy' 5. Richard C. Levin, Alvin K. Klevorick, Richard R. Nelson and Sidney G. Winter (1987) 'Appropriating the Returns from Industrial Research and Development' 6. Sidney G. Winter (2000) 'Appropriating the Gains from Innovation' 7. Joshua S. Gans and Scott Stern (2003) 'The Product Market and the Market for IdeasA" Commercialization Strategies for Technology Entrepreneurs' 8. Ashish Arora and Marco Ceccagnoli (2006) 'Patent Protection, Complementary Assets, and Firms' Incentives for Technology Licensing' 9. Mary Tripsas (1997) 'Unraveling the Process of Creative Destruction: Complementary Assets and Incumbent Survival in the Typesetter Industry' PART III DELIVERING INNOVATIVE VALUE THROUGH RESOURCE ALLOCATION AND ORGANIZATION ACTIVITY 10. Wesley M. Cohen and Daniel A. Levinthal (1990) 'Absorptive Capacity: A New Perspective on Learning and Innovation' 11. Lee Fleming and Olav Sorenson (2004) 'Science as a Map in Technological Search' 12. Jack A. Nickerson and Todd R. Zenger (2004) 'A Knowledge based Theory of the Firm The Problem Solving Perspective' 13. Iain M. Cockburn, Rebecca M. Henderson and Scott Stern (2000) 'Untangling the Origins of Competitive Advantage' PART IV DELIVERING INNOVATIVE VALUE THROUGH INTER ORGANIZATIONAL DRIVERS 14. Gary P. Pisano (1990) 'The R&D Boundaries of the Firm: An Empirical Analysis' 15. Walter W. Powell, Kenneth W. Koput and Laurel Smith Doerr (1996) 'Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology' 16. David C. Mowery, Joanne E. Oxley and Brian S. Silverman (1996) 'Strategic Alliances and Interfirm Knowledge Transfer' 17. Michael J. Leiblein, Jeffrey J. Reuer and Frederic Dalsace (2002) 'Do Make or Buy Decisions Matter? The Influence of Organizational Governance on Technological Performance' 18. Joanne E. Oxley and Rachelle C. Sampson (2004) 'The Scope and Governance of International R&D Alliances' 19. Gautam Ahuja and Riitta Katilla (2001) 'Technological Acquisitions and the Innovation Performance of Acquiring Firms: A Longitudinal Study' PART V REAL OPTIONS 20. Rita Gunther McGrath (1997) 'A Real Options Logic for Initiating Technology Positioning Investments' 21. Bruce Kogut and Nalin Kulatilaka (2001) 'Capabilities as Real Options' 22. Timothy B. Folta and Jonathan P. O'Brien (2004) 'Entry in the Presence of Dueling Options' 23. Michael J. Leiblein and Arvids A. Ziedonis (2007) 'Deferral and Growth Options Under Sequential Innovation' 24. Arvids A. Ziedonis (2007) 'Real Options in Technology Licensing' 25. Ron Adner and Daniel A. Levinthal (2004) 'What Is Not A Real Option: Considering Boundaries for the Application of Real Options to Business Strategy'
author_names: Michael J Leiblein

Arvids A Ziedonis
title: Technology strategy and innovation management
year: 2011

abstract: The business world is shifting from formal, defined roles. Major business discontinuities such as deregulation, globalization, technological convergence, and the rapid evolution of the Internet have blurred the roles that companies play in their dealings with other businesses. The distinguishing feature of the new marketplace is that consumers become a new source of competence for the corporation. This competence can be seen in industries such as software, which have moved from testing products in usability laboratories, to testing them in customer environments. To effectively harness the competence of the consumer, managers must: engage their customers in an active, explicit, and ongoing dialogue; mobilize communities of customers; manage customer diversity; and cocreate personalized experiences with customers. The real challenge for senior managers will be to provide a stable center while embracing change. The only way to do this is to develop a strong set of organizational values. Readying the organization for customer competence in the new economy will require a major overhaul of the traditional governance systems and organizational structures of the company. The biggest challenge for companies will be to develop the infrastructures needed to support a multichannel distribution network. AN: 2628909 ISSN: 0017 8012 Full Text Word Count: 6022 Database: Health Business FullTEXT CO OPTING CUSTOMER COMPETENCE In the new economy, companies must incorporate customer experience into their business models in ways hitherto untapped. Here are the challenges in doing that. BUSINESS COMPETITION used to be a lot like traditional theater: On stage, the actors had r clearly defined roles, and the customers paid for their tickets, sat back, and watched passively. In business, companies, distributors, and suppliers understood and adhered to their well defined roles in a corporate relationship. Now the scene has changed, and business competition seems more like the experimental theater of the 1960s and 1970s; everyone and anyone can be part of the action. The shift away from formal, defined roles is already occurring in business to business relationships. Major business discontinuities such as deregulation, globalization, technological convergence, and the rapid evolution of the Internet have blurred the roles that companies play in their dealings with other businesses. Consider the relationship between Ford and its main suppliers. Far from being passive providers of materials and parts, Ford's suppliers have become close collaborators in the development of new vehicles. At the same time, however, they compete for value by negotiating the prices for the parts and the materials they supply. Some suppliers are starting to compete directly. For example, Markham, Ontario based auto parts giant Magna International has the ambition and the potentialto assemble automobiles itself. The story's the same for distributors. For example, Wal Mart does more than just distribute Procter Gamble's goods. It shares daily sales information and works with P&G in product warehousing and replenishment to ensure that consumers can always find the goods they want at low prices. In some product categories, however, Wal Mart competes head to head with P&G. For instance, Wal Mart last year rolled out its own brand of detergent, Sam's American Choice, which competes nationally with P&G's popular Tide brand. The changing dynamics of business has been the focus of managerial debate the past few years. Practitioners and scholars talk about companies "competing as a family." They talk about alliances, networks, and collaboration among companies. But managers and researchers have largely ignored the consumer, the agent that is most dramatically transforming the industrial system as we know it. (See the exhibit "The Evolution and Transformation of Customers." Thanks largely to the Internet, consumers have been increasingly engaging themselves in an active and explicit dialogue with manufacturers of products and services. What's more, that dialogue is no longer being controlled by corporations. Individual consumers can address and learn about businesses either on their own or through the collective knowledge of other customers. Consumers can now initiate the dialogue; they have moved out of the audience and onto the stage. Customers are fundamentally changing the dynamics of the marketplace. The market has become a forum in which consumers play an
author_names: Coimbatore Krishnarao Prahalad
title: file:/F:\BORRADORES BV 2007\BV 2004 VERSION CUBANA. LA LEGITIM
year: 2007

abstract: Discontinuous change in the environment often renders old beliefs obsolete or even misleading. Prior research often argues that organizations can benefit from deliberately unlearning their old beliefs to enable the learning of new beliefs. Although intuitively appealing, this claim has rarely been investigated systematically. Using an n armed bandit model, we examine the implications of different unlearning strategies for an organization's ability to adapt to different types of environmental discontinuities. We find that the implications of unlearning depend upon the interplay of the depth and breadth of unlearning, the type of discontinuity, and the timing of unlearning, and results often run counter to common intuition. These results have important implications for the literature on unlearning, theories of learning and the literature on organizational change following discontinuities.
author_names: Dirk Martignoni
title: When Old Truths Become New Falsehoods: Unlearning in the Light of Technological Discontinuities
year: 2019

abstract: We work to unbundle the relationship between organizational identity and organizational adaptation to discontinuous technologies. While organizational identity has been envisaged as an impediment to the adoption of technological discontinuities by the majority of scholars, other research has recently portrayed organizational identity as a driver for change. We provide an explorative basis to reconcile these contradictions by dissecting elements of organizational identity that exacerbate organizational inertia and constitu ents of organizational identity that enable organizations to respond earlier and more flexibly to environmental changes. Using field data on the response patterns of German publishing houses to the emergence of digitization and internet enabled business models, we identify four distinct types of organizational identity, which we metaphorically label as Mercenaries, Knights, Villeins, and Samu rai. These four identity types vary with regard to two dimensions of identity: focus, which ranges from highly intra to highly extra domain focused, and locus of legitimacy, which ranges from highly self related to highly environment related. Furthermore, we propose that each of the four types of organizational identity entails a characteristic pattern of adaptation that is idiosyncratic regard ing the response timing, the activeness versus passiveness of the response, and the type of active response strategies. Our re search adds to the emerging stream of research on cognitive emotional determinants of organizational adaptation, particularly by providing a framework that explains how variation in the identity of organizations causes variations in those organizations' adoption of technological discontinuities. We also enhance knowledge on family businesses by showing that family influenced businesses are more likely to develop an intra domain focus, which ultimately engenders a passive or defensive response behavior.
author_names: Nadine Kammerlander

Andreas Konig

Albrecht Enders
title: How organizational identity affects incumbents' adaptation to discontinuous technological changes An empirical study in the German book publishing industry
year: 2012

abstract: Product innovation strategies of emerging market companies are increasingly challenging conventional wisdom. Drawing on a qualitative case study of Mahindra Reva, the only electric vehicle producer in India, this paper explores how a bricolage strategy enabled a resource constrained emerging market firm to deliver affordable, innovative, and high tech products with minimal capital investments. The findings of this study illustrate how multiple forms of bricolage can be implemented and managed at organizational and interorganizational levels. They show how different bricolage activities relate to different stages of the new product development process, and further, highlight the complementarities between bricolage and engineering activities. This paper argues that bricolage, which is typically regarded as a behavioral trait or skill that allows entrepreneurs and innovators to operate in challenging environments, can also be a carefully planned and executed strategy conducive to innovation. Thus, it suggests that a cost effective bricolage strategy can underpin emerging market companies' development of discontinuity creating and market disrupting technology products.
author_names: M N Ravishankar
title: A Bricolage Perspective on Technological Innovation in Emerging Markets
venue: IEEE Transactions on Engineering Management
year: 2016

abstract: Extant research investigates how organizations react to a changing environment, characterized by technological discontinuities or demand transformations. Existing theoretical approaches and empiric.
author_names: Ns Zimmermann

Laura J Black
title: Modes and Mechanisms of Organizational Change
year: 2013

abstract: This research paper describes an integrated framework based on both the 'Technology Organization Environment (TOE) framework' and 'Diffusion of Innovation (DoI) theory' The study explores the noteworthy factors and sub factors which are pertinent for the adoption of cloud computing in the Ethiopian Higher Education (EHE) sector. The technology literature herein was based on technology adoption frameworks and theories which were studied in order to identify a set of factors and sub factors relevant to cloud computing adoption. It resulted in conceptualizing an integrated TOE DoI framework for cloud computing adoption in higher education at the university in Ethiopia and in developing its reliable measures. Accordingly, a quantitative study was done with a questionnaire survey comprising 500 respondents in connection with 4 factors (technological, organizational, environmental and socio cultural) Consequently, the cloud computing adoption in Ethiopia was established using factors and concepts adopted from the study. It confirmed that the TOE DoI approach to higher education in Ethiopia is authenticated. Thus, the four factors' reliability statistics validated with a Cronbach's alpha a 0.739, 0.712, 0.761, 0.841, and Cronbach's alpha 'a' based on standard items a 0.740, 0.713, 0.762 and 0.842 for technology, organizational, environmental, and socio cultural factors. This indicates that scaling the four aspects therein suggests profound evidence to determine a cloud computing adoption in EHE with TOE DoI integration.
author_names: Kamal Kant Hiran

Anders Henten
title: An integrated TOE DoI framework for cloud computing adoption in the higher education sector: case study of Sub Saharan Africa, Ethiopia
venue: Int. J. Syst. Assur. Eng. Manag.
year: 2020