Storm Clouds and Silver Linings: Responding to Disruptive Innovations Through Cognitive Resilience
Date
2010
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Wiley-Blackwell
Abstract
Incumbent firms facing disruptive business model innovations must decide whether to
respond through inaction, resistance, adoption, or resilience. We focus on resilient
responses to simultaneous perceived threat and opportunity by managers of small incumbent
firms. Using cognitive framing arguments, we argue that risk experience moderates
perceptions of opportunity, whereas perceived urgency moderates situation threat. We test
our framework in the real estate brokerage context, where small incumbents face considerable
challenges from disruptive business model innovations, such as discount brokers.
Analysis of data from 126 real estate brokers broadly confirms our fraframework. We conclude with implications of our research for small business incumbents.
Description
Article deposited according to publisher policy in Sherpa/RoMEO, Oct. 4, 2010.
This is a pre print file as per the journal publisher's requirements.
Keywords
Citation
Dewald, J. and Bowen, F. E. (2010), “Storm clouds and silver linings: responding to disruptive innovations through cognitive resilience”, Entrepreneurship Theory and Practice, 34(1): 197-218.