Disruption Lies in the Eyes of the Beholder: Firm Capabilities and Endogeneity of Technological Disruption

Abstract

Failure of leading firms to respond to disruptive technological changes has been explained in terms of their “choices.” I investigate the disruptive technological changes in the global industrial robotics industry and suggest that ‘ability’ of the firms play an important role in determining their survival chances. This paper suggests that what may be disruptive (or a sustaining) change may also be a competence-destroying (or a competence-enhancing) change for a firm. Hence, survival during a disruptive change is endogenous to the firm's component and architectural capabilities.