Research Of Disruptive Innovation Erosion Path Based On Endogenous Preference

Destructive path of innovation erosion is an important part of the disruptive innovation theory.Early studies on destructive path of innovation erosion limited on the definition of types of qualitative analysis of the erosion of the path,and the research are basically based on consumer preferences exogenous given.most research are Select the majority of a single specific case evidence analysis.In fact the literature is unable to reveal threat of disruptive innovation due to ignorance of the interaction between firm behavior and consumer preference.This also led to the study can not explain the complexity of the analysis of disruptive innovation erosion path, and the degree of threat is not sufficient, which results in difficulty in explaining many complex phenomena on disruptive innovation. In view of this,we assume consumer preference to be an endogenous variable to expand the theory of disruptive innovation,the research can encourage the new entrants into the enterprises to adopt the actively corporate behavior through the affect the consumer preferences the rapid spread of the the market of erosion, also the research can remind the incumbent firms need to enhance the predictability of the threat level for disruptive innovation to take timely response measures.Based on this background, this paper through a new perspective immediately based on endogenous preference to research of disruptive innovation erosion path.Base on the past research,this paper based on endogenous preference actually is consumer preferences born from business practices and consumer preferences are counterproductive in business behavior,in the two interactions under the influence to research the erosion of the path of disruptive innovation. According to the systematic analysis of interaction between firm behavior and consumer preference,this project adds firm behavior into the utility function.Base on this reseach the paper build the eroded path model of disruptive innovation on different perspectives:endogenous preferences and exogenous preferences. After we solving the equilibrium model results, we can get the different preferences disruptive innovation erosion of the road map by using Matlab software.Unless we do the modle comparison analysis in theory, the paper through select some different practical cases to further verify the theoretical conclusions.Enterprises adopting the positive corporate behavior which can affect consumer preferences is a disruptive innovation erosion effective way to capture the market in a greater extent. The conclusions are meaningful to guide strategic choice of firms.