Research On Disruptive Innovation Value Nerwork And Model Building

The disruptive innovation theory has been rapidly developing since its first proposition by Christensen. The theory was primordially built to explain the frequent changes in America’s hard drive industry, then extended to other industries; for instance, excavator industry, motorcycle industry; printer industry etc. For disruptive innovation doesn’t emphasize breakthroughs of technologies, it turns out an important way for latecomer firms to catch up with the incumbents.Disruptive innovation became heated among scholars and entrepreneurs. However, the theory is still premature and problematic. Scholars criticize that the definition of disruptive innovation is too vague and the phenomenon is defined post hoc. These problems weakened the self-consistency and applicability of the theory. This paper has teased out the critiques from different researches. Based on the achievements made by previous researchers, the case study method, logic analysis, induction method have been used to explore the essential traits of disruptive innovation. Combining with the classic defining method of formal logic, a modified definition is obtained, which is unambiguous and avoids the post hoc problem.Value network is the core of disruptive innovation theory, and also the key to understand the essence of disruptive innovation. By combining blue ocean strategy layout with preference theory, a "layout-preference sequence" framework has been constructed to analyze the relationship between disruptive innovation and the original value network. The result shows disruptive innovation inherits as well as extends the original value network. Inspired by the two mechanisms, the concept of holo-market perspective has been put forward. According to the holo-market perspective, red ocean and blue ocean markets should be simultaneously and comprehensively analyzed when try to detect or implement disruptive innovation. A flow chart is given as guide to put the idea into practice.Another main contribution made by this paper is the construction of a microeconomics model of disruptive innovation. This model explains how an effective disruptive innovation satisfies the market demand with low level of technologies. This model suggests that firms need take both market efficiency and technology efficiency into consideration when to implement or evaluate disruptive innovation. A set of constructs in this model (e.g. tech-utility function, optimized disruption trajectory, disruption judging condition) can be utilized to help with managerial practice and further research.