Disruptive Innovation Strategy Of Incumbent Firms Model And The Empirical Test

The full range of competition and the complexity and flexible changing rate of customer needs in a Hepercompetition Era,bring more challenges to the healthy development of enterprises.Whether it is a mature large enterprise or a small newly start-up firm,the pursuit of healthy development and sustained growth is an inexhaustible motivation for enterprises to strive for.In the Radical Changes of the environment,some established large enterprises collapsed,well some maintained its ever-last superiority.Some new entrants gained an advantage in the last round of disruptive confrontation,but soon fell down and became victims of next round of Encroachment(Utterback,1994;Christensen,1997&2003).Therefore,in the dynamic environment,in the repeating game of the competition,and in the continuing efforts to meet consumers' demand,the disruptive innovation strategy,as a new means to win in the competition,the research of its the applicable scope and specific application is of great theoretical and practical significance(E.Danneels,2004;Christensen,2006).This paper focuses its study on these core issues.Due to the special status in the existing market,incumbent firms often became the primary attack targets of disruptive innovation strategy.Whether they could stand the test of disruption and survive? Whether they could exploit their favourable factors fully and minimize their unfavourable ones to get rid of risks? Whether they could contain competition and build an ever-last advantage? All these problems make the need to broaden the perspective of disruptive innovation study necessary.Although the academic study of the disruptive innovation theory is deepening,the incumbents-based research in this field is very limited.To the end,whether the disruptive innovation strategy is applicable to incumbent firms? This is the first problem the paper attempt to resolve.Therefore,this article thoroughly analyzes the essence,types, application conditions,selection time,and the erosion path of disruptive innovation strategy through the reviews of the previous literature.The conclusion of the analysis makes disruptive innovation strategy applicable to incumbent firms.Second,after the systematic analysis of the applicability of disruptive innovative strategy to incumbent firms,what are the key factors which affected incumbent firms' choice of the disruptive innovation strategy? How should incumbent firms choose a more suitable type of disruptive innovation strategy according to their actual condition? This is the other issue this paper explores to solve.Recent study paid little attention to such issues both home and abroad. Most relevant ones are remain in the theoretical level,relatively standard empirical research is of great absence.Therefore,through the absorption of the previous study,this paper further puts forward a comprehensive conceptual model,to make some useful exploration for incumbents firms to better deal with dynamic competition.Third,how to better persuade incumbent firms choose this strategy? Whether the adoption of disruptive innovation strategy enhances the incumbent firms' performance,and consolidates their competitive position? Whether different types of disruptive innovation strategy have different effects on incumbent firms' performance? This is the last key problem the paper tries to solve.Therefore,this paper develops a comprehensive theoretical model between the type of disruptive innovation and the effect of firm' performance,based on the further study of the present research.By conducting questionnaire survey and acquiring first-hand data,this paper attempts to verify whether or not disruptive innovation strategy is an effective way for incumbent firms to gain competitive advantages.The result of the analysis of sample data and hypothesis testing shows that changes of consumers' demand has a significant impact on incumbent firm's choice of low-end disruptive innovation strategy.The internal capability,the external environment pressures both have a positive effect on incumbent firms' choice of new market development strategy.The disruptive innovation strategy has a positive influence on incumbent firms' performance,no matter it is the existing market low-end disruptive strategy or the new market development strategy.Finally,the paper summarizes the conclusions systematically,points out the progress in theoretical level,the recommendations for practices,the limitations and future research directions of this study.