Research On Evolutionary Path And Revolutionary Mechanism Of Business Execution Based On Disruptive Innovation

Two empirical phenomena in the business world motivate this study because of the rapid change of business environment. First is enterprises' ongoing pursuit of execution in incumbent markets for more excellent operation, the pursuit is intensifying as execution deficiency becomes a common thing in enterprises. Second, the managers' ongoing pursuit of innovation for the sustainable development of their businesses. This pursuit makes the plannings become more complex, and these lead to the execution deficiency of enterprises. As we all know, there are lots of typologies of innovation, but it is the disruptive innovation which put forward by Chirstensen (1995) that affects the execution and sustaining operations of enterprises most. So the indeification of changing content of business exeuction becomes the foundation of business sustainable development. Based on all above, this dissertation choose this theme -the evolutionary path and revolutionary mechanism of business execution based on disruptive innovation- as the subject investigated .Through investigating on different enterprises, we have found that the business execution means the stable status including external fit and internal fit of resources within and without the enterprises. Howerver, the disruptive innovation means unstable and turbulent. Obviously the performance of execution and disruptive innovation is inconsistent. So it is necessary that we should study on the shortage of existing theories and methods that can guarantee and enhance the execution of enterprises and on the causes of above shortage. And meanwhile, we will collect data of execution based on disruptive innovation from enterprises. In this study the method of factor analysis will be used to indetify the main factors that influence the business execution under disruptive innovation environment. The factors get from factor analysis will be analyzed by linear regressive method to get the critical factors that influence the business execution. Then we develop and validate the evolutionary path by Structural Equation Model (SEM) method. Based on these we also develop the revolutionary mechanism by catastrophe theory that put forward by French Mathematician named Rene Thom. As a consequence, we have reconciled the contradiction between execution and disruptive innovation which was worried about by Richard Foster and Sarah Kaplan. This study also provide some therotical guide for guaranteeing and improving business execution.In this investigation we cross these two concepts of execution and disruptive innovation and find the changing rules of execution by SEM method and catastrophe theory. Definitely the rules that we work out in this dissertation are constructive for the business pracitices, meanwhile it not only enriched the theory of execution but enriched the theory of disruptive innovation. The opportunity for theoretical contribution of this dissertation is significant, since the literatures on the disruptive innovation and execution are relative thin. So there is on doubt that the contributions of this dissertation are helpful for the academic world to study the relationship between disruptive innovation and organizational behavior. It drew inferences about other cases from one instance.