“We contest the conclusions of scholars such as Tushman and Anderson (1986), who have argued that incumbent firms are most threatened by attacking entrants when the innovation in question destroys, or does not build upon, the competence of the firm. We observe that established firms, though often at great cost, have led their industries in developing critical competence-destroying technologies, when the new technology was needed to meet existing customers’ demands.”

— Clayton M. Christensen

Clayton Christensen and Joseph L. Bower. (1996) "Customer power, strategic investment, and the failure of leading firms", Strategic Management Journal, Vol. 17(3), pp. 199 as cited in: C.G. Sandström (2010) A revised perspective on Disruptive Innovation p. 8
1990s

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "We contest the conclusions of scholars such as Tushman and Anderson (1986), who have argued that incumbent firms are mo…" by Clayton M. Christensen?

Clayton M. Christensen 23

Mormon academic 1952–2020

Related quotes

“New technologies (reinforced by new trade rules) are enhancing the market power of incumbent, dominant firms, such as Microsoft, which are all from the developed world; for the first time, in a key global industry, there is a near-global monopolist.”

Joseph E. Stiglitz book Making Globalization Work

§2, p. 58
Making globalization work (2006)

“Early entry is appropriate when the following general circumstances hold:
- Image and reputation of the firm are important to the buyer, and the firm can develop an enhanced reputation by being a pioneer.
- Early entry can initiate the learning process in a business in which the learning curve is important, experience is difficult to imitate, and it will not be nullified by successive technological generations.
- Customer loyalty will be great, so that benefits will accrue to the firm that sells to the customer first.
- Absolute cost advantages can be gained by early commitment to supplies of raw materials, distribution channels, and so on.”

Michael E. Porter (1947) American engineer and economist

2008 edition, p. 248
Competitive strategy, 1980

“IT architecture is often assumed to follow business strategy, to align IT with the business's strategic objectives. Increasingly, though, many business strategies depend on specific underlying IT capabilities. To develop a synergy between business strategy and IT architecture, firms must develop organizational competencies in IT architecture. My research has identified four IT architectural stages, each with its own requisite competencies. The "application silo architecture stage" consists of IT architectures of individual applications. The "standardized technology architecture stage" has an enterprise-wide IT architecture that provides efficiencies through technology standardization. The "rationalized data architecture stage" extends the enterprise-wide IT standards to data and processes. And the "modular architecture stage" builds onto enterprise-wide global standards with loosely coupled IT components to preserve the global standards while enabling local differences. Each stage demands different organizational competencies to implement the architecture and prepare the firm to move to the next stage.”

Jeanne W. Ross (1958) American computer scientist

Jeanne W. Ross (2003) Creating a Strategic IT Architecture Competency: Learning in Stages. MIT Sloan Working Paper No. 4314-03, April 2003. Abstract

“When Government has a monopoly of all production and all distribution, as many Governments have, it can not permit any economic activity that competes with it. This means that it can not permit any new use of productive energy, for the new always competes with the old and destroys it. Men who build railroads destroy stage coach lines.”

Rose Wilder Lane (1886–1968) American journalist

Source: Discovery of Freedom: Man's Struggle Against Authority (1943), p. 32

“Our findings support many of the conclusions of the resource dependence theorists, who contend that a firm's scope for strategic change is strongly bounded by the interests of external entities (customers, in this study) who provide the resources the firm needs to survive.”

Clayton M. Christensen (1952–2020) Mormon academic

Clayton Christensen and Joseph L. Bower. (1996) "Customer power, strategic investment, and the failure of leading firms", Strategic Management Journal, Vol. 17(3), p. 212)
1990s

“If a top management team cannot clearly articulate the five or six fundamental industry trends that most threaten its firm's continued success, it is not in control of the firm's destiny.”

Gary Hamel (1954) American management expert

Source: Competing for the Future, 1996, p. 73

“This paper reports on a comparative case study of 13 industrial firms that implemented an enterprise resource planning (ERP) system. It compares firms based on their dialectic leaming process. All firms had to overcome knowledge barriers of two types: those associated with the configuration of the ERP package, and those associated with the assimilation of new work processes. We found that both strong core teams and carefully managed consulting relationships addressed configuration knowledge barriers. User training that included both technical and business processes, along with a phased implementation approach, helped firms to overcome assimilation knowledge barriers. However, all firms in this study experienced ongoing concerns with assimilation knowledge barriers, and we observed two different approaches to address them. In a piecemeal approach, firms concentrated on the technology first and deferred consideration of process changes. In a concerted approach, both the technology and process changes were undertaken together. Although most respondents clearly stated a preference for either piecemeal or concerted change, all firms engaged in practices that reflected a combination of these approaches.”

Jeanne W. Ross (1958) American computer scientist

Abstract, p. 17-18
Learning to implement enterprise systems (2002)

“It makes sense to describe a core competence as a complex adaptive system, located in the lower regions of the I-Space between an ordered regime in which knowledge assets get frozen into technologies and a chaotic regime in which the stability necessary for effective organizational coordination and integration remains absent. Core competences, then, have their being in a region of the I-Space sandwiched between an excess of usable structure and a total lack of it. We hypothesize that the possession of a core competence is one measure of a firm’s ability to deal with complexity.”

Max Boisot (1943–2011) British academic and educator

Source: Knowledge Assets, 1998, p. 205

“How could such industries as software, semiconductors, and computers have been so innovative despite historically weak patent protection? We argue that if innovation is both sequential and complementary—as it certainly has been in those industries—competition can increase firms’ future profits thus offsetting short-term dissipation of rents. A simple model also shows that in such a dynamic industry, patent protection may reduce overall innovation and social welfare. The natural experiment that occurred when patent protection was extended to software in the 1980's provides a test of this model. Standard arguments would predict that R&D intensity and productivity should have increased among patenting firms.”

Eric Maskin (1950) American Nobel laureate in economics

Bessen, James, and Eric Maskin. " Sequential innovation, patents, and imitation http://ec.europa.eu/internal_market/indprop/docs/comp/replies/appendix1_en.pdf." The RAND Journal of Economics, 40.4 (2009): p. 611.

“Property rights, governance structures and rules of exchange are arenas in which modern states establish rules for economic actors. States provide stable and reliable conditions under which firms organize, compete, cooperate and exchange. The enforcement of the laws affects what conceptions of control can produce stable markets. There are political contests over the content of laws, their applicability to given firms and markets, and the extent and direction of state intervention into economy. Such laws are never neutral. They favor certain groups of firms.”

Neil Fligstein (1951) American sociologist

Source: Markets as politics: A political-cultural approach to market institutions, 1996, p. 657

Help us to complete the source, original and additional information

Clayton M. Christensen 23

Related quotes

Related topics