Strategic Management Concepts 2nd Edition by Unknown

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CHAPTER 7 Business Strategy: Innovation and Entrepreneurship 237

30. This discussion is based on: Utterback,

39. Harrigan, K. R. (1980), Strategies for

(1997), The Economics of Industrial Innova-

J. M. (1994), Mastering the Dynamics of

Declining Businesses (Lexington, MA:

tion (Cambridge, MA: MIT Press); and Foster,

Innovation (Boston, MA: Harvard Business

Heath).

R., and S. Kaplan (2001), Creative Destruc-

School Press); Anderson, P., and M. Tush-

40. Moore, G. A. (1991), Crossing the

tion: Why Companies That Are Built to Last

man (1990), “Technological discontinuities

Chasm. Marketing and Selling Disruptive

Underperform the Market—and How to Suc-

and dominant designs: A cyclical model of

Products to Mainstream Customers (New

cessfully Transform Them.

technological change,” Administrative Sci-

York: HarperCollins).

54. The discussion of incremental and radical

ence Quarterly 35: 604–634; and Schilling,

41. We follow the customer type category

innovations is based on: Hill, C.W.L., and F.

M. A. (1998), “Technological lockout: An

originally introduced by E. M. Rogers (1962),

T. Rothaermel (2003), “The performance of

integrative model of the economic and stra-

Diffusion of Innovations (New York: Free

incumbent firms in the face of radical techno-

tegic factors driving technology success and

Press) and also used by G. Moore (1991):

logical innovation,” Academy of Management

failure,” Academy of Management Review 23:

technology enthusiasts (~2.5%), early adopt-

Review 28: 257–274.

267–284.

ers (~13.5%), early majority (~34%), late

55. Hill, C.W.L., and F. T. Rothaermel

31. This discussion is based on: Teece, D. J.

majority (~34%), and laggards (~16%).

(2003), “The performance of incumbent firms

(1986), “Profiting from technological innova-

Rogers’ book originally used the term innova-

in the face of radical technological innova-

tion: Implications for integration, collabora-

tors rather than technology enthusiasts for the

tion,” Academy of Management Review 28:

tion, licensing and public policy,” Research

first segment. Given the specific definition of

257–274.

Policy 15: 285–305; and Ceccagnoli, M., and

innovation as commercialized invention in this

56. “A David and Gillette story,” The Wall

F. T. Rothaermel (2008), “Appropriating the

chapter, we follow Moore (1991, page 30) and

Street Journal, April 12, 2012.

returns to innovation,” Advances in Study of

use the term technology enthusiasts.

57. This discussion is based on: Hill, C.W.L.,

Entrepreneurship, Innovation, and Economic

42. “For wearable computers, future looks

and F. T. Rothaermel (2003), “The perfor-

Growth 18: 11–34.

blurry,” The Wall Street Journal, May 30,

mance of incumbent firms in the face of radi-

32. Abernathy, W. J., and J. M. Utterback

2013.

cal technological innovation.”

(1978), “Patterns of innovation in technology,”

43. Shiller, R. (1995), “Conversation, infor-

58. Brandenburger, A. M., and B. J. Nale-

Technology Review 80: 40–47; Benner, M.,

mation, and herd behavior,” American Eco-

buff (1996), Co-opetition (New York: Cur-

and M. A. Tushman (2003), “Exploitation,

nomic Review 85: 181–185.

rency Doubleday); and Christensen, C. M.,

exploration, and process management: The

44. “A year of few dull moments,” The New

and J. L. Bower (1996), “Customer power,

productivity dilemma revisited,” Academy of

York Times, December 21, 2012; “How the

strategic investment, and the failure of lead-

Management Review 28: 238–256.

wheels came off for Fisker,” The Wall Street

ing firms,” Strategic Management Journal

33. “Containers have been more important for

Journal, April 24, 2013.

17: 197–218; Adner, R. (2012), The Wide

globalization than freer trade,” The Economist,

Lens. A New Strategy for Innovation (New

45. The Iridium example is drawn from:

May 18, 2013.

York: Portfolio)

Finkelstein, S. (2003), Why Smart Executives

34. The article “Containers have been

Fail: And What You Can Learn from Their

59. Henderson, R., and K. B. Clark (1990),

more important for globalization than freer

Mistakes (New York: Portfolio).

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