Disruptive Innovation: An Intellectual History and Directions for Future Research

Clayton M. Christensen; Rory  McDonald; Elizabeth J.  Altman; Jonathan E.  Palmer

Article | Journal of Management Studies | November 2018

Disruptive Innovation: An Intellectual History and Directions for Future Research

by Clayton M. Christensen, Rory McDonald, Elizabeth J. Altman and Jonathan E. Palmer

Abstract

The concept of disruptive innovation has gained considerable currency among practitioners despite widespread misunderstanding of its core principles. Similarly, foundational research on disruption has elicited frequent citation and vibrant debate in academic circles, but subsequent empirical research has rarely engaged with its key theoretical arguments. This inconsistent reception warrants a thoughtful evaluation of research on disruptive innovation within management and strategy. We trace the theory’s intellectual history, noting how its core principles have been clarified by anomaly-seeking research. We also trace the theory’s evolution from a technology-change framework—essentially descriptive and relatively limited in scope—to a more broadly explanatory causal theory of innovation and competitive response. This assessment reveals that our understanding of the phenomenon of disruption has changed as the theory has developed. To reinvigorate academic interest in disruptive innovation, we propose several underexplored topics—response strategies, performance trajectories, and innovation metrics—to guide future research.

Keywords: disruptive innovation; innovation metrics; competitive strategy; systemic industries; technology trajectories; Disruptive Innovation; Theory; History; Competitive Strategy; Research;

Format: Print

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Citation:

Christensen, Clayton M., Rory McDonald, Elizabeth J. Altman, and Jonathan E. Palmer. "Disruptive Innovation: An Intellectual History and Directions for Future Research." Special Issue on Managing in the Age of Disruptions. Journal of Management Studies 55, no. 7 (November 2018): 1043–1078.

Executive Summary:
With emerging-market giants such as Brazil, Russia, India, and China experiencing slowdowns, investors, entrepreneurs, and multinationals are looking elsewhere. They’ve been eyeing frontier economies such as Nigeria and Pakistan with great interest—and enormous trepidation. Can one find serious growth opportunities amid extreme poverty and a lack of infrastructure and institutions?
The answer, the authors argue, is yes. The key lies in market-creating innovations: products and services that speak to unmet local needs, create local jobs, and scale up quickly. Examples include MicroEnsure, which has made insurance affordable for 56 million people in emerging economies, and Galanz, which has brought microwave ovens to millions of Chinese consumers previously considered too poor to buy such an appliance.
What’s more, the essentials of development can be “pulled in” by market-creating innovators—and over time, governments and financial institutions tend to offer their support.

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Disruptive Innovation: An Intellectual History and Directions for Future Research

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