Inhibitors of utilization of disruptive innovations in incumbent organizations

Disruptive innovations are a major renewal force in society as they present opportunities for economic growth, new solutions to unresolved problems, and overall benefits for multiple stakeholders. However, utilizing the underlying potential of these innovations poses major challenges for incumbent organizations. In the literature, it has been recognized that disruptive innovations - that are complex, networked, require heavy investments, and consist of new business models - require an existing resource base of the established corporate parent. These innovations are difficult for start-ups as they lack power to legitimize their innovations due to the nascent nature of the newborn industries. A number of inhibiting attributes inside the established corporations prohibit the utilization of disruptive technological potential, for example, cannibalization of existing businesses, misfit with current capabilities, and differing requirements posed for business processes. This paper outlines a proposed framework for these inhibiting attributes at incumbent corporations in utilizing disruptive potential. The proposed framework considers structure, process, resource, capability, competence, and institutional factors that create the dynamics of risk aversion inside established corporations. The paper further discusses the managerial and research implications of the framework.