Date of this Version
When start-up innovation involves a potentially disruptive technology—initially lagging in the predominant performance metric, but with a potentially favorable trajectory of improvement—incumbents may be wary of engaging in cooperative commercialization with the start-up. While the prevailing theory of disruptive innovation suggests that this will lead to (exclusively) competitive commercialization and the eventual replacement of incumbents, we consider a dynamic strategy involving product market entry before switching to a cooperative commercialization strategy. Empirical evidence from the automated speech recognition industry from 1952 to 2010 confirms our main hypothesis.
The original, published article is available at: http://dx.doi.org/10.1287/mnsc.2014.2035
technology commercialization strategy, disruptive innovation
Marx, M., Gans, J. S., & Hsu, D. H. (2014). Dynamic Commercialization Strategies for Disruptive Technologies: Evidence From the Speech Recognition Industry. Management Science, 60 (12), 3103-3123. http://dx.doi.org/10.1287/mnsc.2014.2035
Date Posted: 19 February 2018
This document has been peer reviewed.