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The seeds of creation and destruction pod together!: for organizations to survive industry disruption they require more than dynamic capabilities
Dissertation   Open access

The seeds of creation and destruction pod together!: for organizations to survive industry disruption they require more than dynamic capabilities

Nathan Edwin Browne
Doctor of Business Administration (D.B.A.), Drexel University
Jun 2023
DOI:
https://doi.org/10.17918/00001737
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Abstract

Creative destruction Firm competency traps Firm inertia Leadership conviction Technologically led industry disruption Time-based decision accuracy
Technologically led industry disruption will dominate business in the coming decades and this has consequences for all organizations in those affected industries. Even with the insight of past knowledge and theory of how this form of disruption impacts on the incumbent firm, many are simply not able to adjust and or choose against such action. Technologically driven industry disruption tends to, in every aspect, have the most disruptive impact on an industry. While the theory of dynamic capabilities presents the argument of how, through the reconfiguration of a firms competencies, the incumbent organization has the opportunity and ability to adjust itself to the external environment shift caused by the disruption, this research study proposes that it does not sufficiently explain away or decrease in exposure the dichotomy and conflict that the incumbent firms are faced with in making the transition. The fact that the incumbent has a current business model and base it must serve while needing to embrace the new disruptive business model that is required for the future is counterintuitive. Furthermore, even with effort to seek new mastery, firm competency traps and firm inertia are difficult considerations that impact on the firm's transition. The research study proposes that leadership conviction towards the disruption, along with the time-based decision accuracy of when to act, are equally critical required determinants towards the process of developing the new mastery that is required. It is presented that the firm will require the holistic incorporation of these considerations to be able to deliver the most favorable outcomes when explaining or managing industry disruptive change. Leadership conviction towards the disruption triggers the intention and commitment to act, while the time based decision accuracy of when to act, is a vital strategic reality for the potential success as organizations juggle between the acceptance of the change, their ability to change and when the most optimal time to change is. This research contributes towards the theory of dynamic capabilities and industry disruption. The applied research method is a real time qualitative single case design of the automobile manufacturers within the automotive industry.

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