Disruptive Technologies: Explaining Entry in Next Generation Information Technology Markets

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dc.contributor.authorNault, Barrie R
dc.contributor.authorVandenbosch, Mark B.
dc.date.accessioned2015-06-16T17:59:55Z
dc.date.available2015-06-16T17:59:55Z
dc.date.issued2000-09
dc.descriptionINFORMS: author’s accepted manuscript can be posted. 12 month embargo. Must include DOI to publisher version.https://www.informs.org/Find-Research-Publications/INFORMS-Journals/Rights-Permissions#work. Link to publisher's version http://ezproxy.lib.ucalgary.ca/login?url=http://search.proquest.com.ezproxy.lib.ucalgary.ca/docview/208173787?accountid=9838en_US
dc.description.abstractThe most difficult challenge facing a market leader is maintaining its leading position. This is especially true in information technology and telecommunications industries, where multiple product generations and rapid technological evolution continually test the ability of the incumbent to stay ahead of potential entrants. In these industries, an incumbent often protects its position by launching prematurely to retain its leadership. Entry, however, happens relatively frequently. We identify conditions under which an entrant will launch a next generation product thereby preventing the incumbent from employing a protection strategy. We define a capabilities advantage as the ability to develop and launch a next generation product at a lower cost than a competitor, and a product with a greater market response is one with greater profit flows. Using these definitions, we find that an incumbent with a capabilities advantage in one next generation product can be overtaken by an entrant with a capabilities advantage in another next generation product only if the entrant’s capabilities advantage is in a disruptive technology that yields a product with a greater market response. This can occur even though both next generation products are available to both firms. We also show that the competition may require the launching firm to lose money at the margin on the next generation product.en_US
dc.description.refereedYesen_US
dc.identifier.citationNault, B.R., and M.B. Vandenbosch, "Disruptive Technologies: Explaining Entry in Next Generation Information Technology Markets," Information Systems Research, 11, 3 (September 2000), 304-319.en_US
dc.identifier.doihttps://doi.org/10.1287/isre.11.3.304.12208
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/34160
dc.identifier.issn1526-5536
dc.identifier.urihttp://hdl.handle.net/1880/50478
dc.language.isoenen_US
dc.publisherINFORMSen_US
dc.publisher.corporateUniversity of Calgaryen_US
dc.publisher.departmentManagement Information Systemsen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.publisher.urlhttps://www.informs.org/en_US
dc.subjectCompetitive Strategyen_US
dc.subjectDefensive Strategyen_US
dc.subjectDistruptive Technologyen_US
dc.subjectGame Theoryen_US
dc.subjectProduct Researchen_US
dc.titleDisruptive Technologies: Explaining Entry in Next Generation Information Technology Marketsen_US
dc.typejournal article
thesis.degree.disciplineManagement Information Systemsen_US
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