Architectural Innovation: The Reconfiguration of Existing Product Technologies and The Failure of Established Firms

Rebecca M. Henderson; Kim B. Clark

Article | Administrative Science Quarterly | March 1990

Architectural Innovation: The Reconfiguration of Existing Product Technologies and The Failure of Established Firms

by Rebecca M. Henderson and Kim B. Clark

Keywords: Design; Innovation and Invention; Product; Technology; Failure; Business Ventures;

Format: Print

22 pages

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Henderson, Rebecca M., and Kim B. Clark. "Architectural Innovation: The Reconfiguration of Existing Product Technologies and The Failure of Established Firms." Administrative Science Quarterly 35, no. 1 (March 1990): 9–30. (Reprinted in The Management of Innovation, edited by John Storey, London: Elgar, 2004; Managing Strategic Innovation and Change, edited by M.Tushman and P. Anderson, Oxford University Press, 2004; and in Strategic Management of Technology and Innovation, edited by Robert Burgelman, Clayton Christensen and Steven Wheelwright. Oxford University Press, 2004. Translated into Chinese for inclusion in an ASQ sponsored collection of "best papers" in 2005.)

In the fall of 2018, Hiro Mizuno, the Chief Investment Officer (CIO) of GPIF, the Japanese Government Pension Fund, was reflecting on his efforts to integrate Environmental, Social and Governance (ESG) issues into every aspect of GPIF’s portfolio. His efforts ranged from constructing new stock market indices based on ESG data, changing the compensation and incentives of active investment managers and passive funds, pushing for more corporate sustainability reporting and integrated reporting, and establishing collaborations with other asset owners to drive systems level change. He was convinced that the only way to meet his responsibilities to his beneficiaries was to improve the performance of the entire economy through a focus on improving corporate governance, increasing inclusion in the workplace and gender diversity and reducing environmental damage and progress towards tackling climate change. The early results from his efforts were promising, but was there more he could do?

Technical Note | HBS Case Collection | December 2018

Note on Economic Inequality (2018)

Rebecca Henderson, Clayton S. Rose, Jessica A. Gover and Aldo Sesia

For over half a century, most of the world's economies have enjoyed steady growth and prosperity. While this economic growth has reduced the number of people living in poverty, it has come with an increase in economic inequality. The gap between the "haves" and the "have-nots" in developed countries has widened, with a small proportion of the population reaping an increasingly larger share of a country's economic rewards. This growing economic inequality has been particularly pronounced in the United States, but the phenomenon has also occurred in many nations. This note provides background on aspects of economic inequality. It begins by describing both income inequality and wealth inequality, providing an explanation of two widely used metrics and data that show increasing inequalities over time. It then moves to the factors that might contribute to this inequality, as well to propositions of economic and social consequences that might result from the widening gap. Finally, it addresses the issue of "equality of opportunity" or social mobility. This is an update to the Note on Economic Inequality (2015). It provides additional information on economic inequality, including union membership and inequality and political polarization.

Keywords: Economic inequalty; wealth inequality; equality of opportunity; political polarization; Economic Growth; Economics; Income; Wealth; Equality and Inequality; Society; Problems and Challenges;

Citation:

Henderson, Rebecca, Clayton S. Rose, Jessica A. Gover, and Aldo Sesia. "Note on Economic Inequality (2018)." Harvard Business School Technical Note 319-071, December 2018. View Details

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