Start Date
11-12-2016 12:00 AM
Description
In this paper, we draw on the literatures on path dependence and disruptive innovation to examine in an experimental setting how path-dependent firms respond to digital disruption. As our results indicate, in the face of digital disruption, path-dependent firms tend to renovate the technological foundation on which their strategic path is based if they have the opportunity to reproduce their established strategic path. Our findings also suggest that path-dependent firms equally tend to renovate their technological foundation or the targeted market segment in the face of digital disruption if they are unable to reproduce their established strategic path. Our findings provide insights into the challenges that digitization imposes on established firms, complement the literature on path dependence with insights into path disruption, contribute an integrated view to the literature on disruptive innovation, and offer some guidance to practitioners.
Recommended Citation
Rauch, Madeleine; Wenzel, Matthias; and Wagner, Heinz-Theo, "The Digital Disruption of Strategic Paths: An Experimental Study" (2016). ICIS 2016 Proceedings. 22.
https://aisel.aisnet.org/icis2016/HumanBehavior/Presentations/22
The Digital Disruption of Strategic Paths: An Experimental Study
In this paper, we draw on the literatures on path dependence and disruptive innovation to examine in an experimental setting how path-dependent firms respond to digital disruption. As our results indicate, in the face of digital disruption, path-dependent firms tend to renovate the technological foundation on which their strategic path is based if they have the opportunity to reproduce their established strategic path. Our findings also suggest that path-dependent firms equally tend to renovate their technological foundation or the targeted market segment in the face of digital disruption if they are unable to reproduce their established strategic path. Our findings provide insights into the challenges that digitization imposes on established firms, complement the literature on path dependence with insights into path disruption, contribute an integrated view to the literature on disruptive innovation, and offer some guidance to practitioners.