Exploring incumbent firm and disruptive innovation factors and reactions: A preliminary literature review of disruption research in the last 20 years

Abstract

In an era characterized by digital transformation and rapid technological advancement, understanding the phenomenon of disruptive innovation (DI) and shedding light on its evolution and implication for incumbent firms is paramount. This study employs a preliminary literature review to identify key works and methodologies in DI research; it delves into empirical analyses, qualitative studies, and theoretical reviews to identify key trigger events, domains, and methodologies associated with DI. Cross-industry findings reveal the critical importance of aligning innovation with domains related to value creation models, digital technologies, and organizational culture. Incumbent firms face challenges from overlooked trigger events such as customer changing needs, business model innovation by entrants, new disruptive technologies, management perception and business performance. The research underscores the complexity of DI and suggests a need for business model adaptation from incumbent firms, emphasizing a shift towards customer orientation and dynamic capabilities. This study contributes to the strategic management literature by proposing avenues for further exploration, including the development of a conceptual model to guide strategic decision making in a situation of disruption.