The article focuses on how companies cope with the process of discontinuous change, when technological and market changes are so swift and far-reaching that the company's basic identity must change as well. Lego, which began as a manufacturer of plastic building block toys, and now competes with Sony and Nintendo in the digital and online game industries, is cited as an example. Established firms are less able to deal with discontinuous innovation than start up companies which handle it from scratch. The networks established firms have with their clients, suppliers, etc. inhibit the adaptation of dramatic innovations. The article proposes strategies for the formation of new networks that will facilitate the adoption of innovations within the company without disrupting the networks already created by its core business.
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