It would therefore be interesting to apply the theories on this to research how disruptive innovations work but also put the disruptive theory in a business model context.

2006). The emergent theory of disruptive innovation was initially a statement of correlation. Solar power is a good example of an innovation with many disruptive characteristics and a huge potential for disrupting the energy sector.

The key issues have been summarized into three major perspectives: (1) "What is disruptive This concept focuses on the impact of innovations … Introduction Disruptive innovation theory is based on the fact that the reasons that contribute to a firm’s success can also play a significant role in its failure. The theory of disruptive innovation, introduced in these pages in 1995, has proved to be a powerful way of thinking about innovation-driven growth. The concept of disruptive innovation explains the failure of the established companies when they encounter certain changes in the market. ŠDisruptive innovation begins as less desirable, but eventually creates a new paradigm shift ŠHarnessing disruptive innovation is a process, from generating ideas to putting these ideas into action ŠCertain barriers exist to disruptive innovation ŠVodafone exemplifies ways to overcome these barriers

Empirical findings showed that incumbents outperformed entrants in the context of sustaining innovations, but underperformed in the context of disruptive innovations. The OECD’sOslo Manual(2005), a widely used framework for measuring innovation activities, defines disruptive innovation as “an innovation that has a significant impact on a market and on the economic activity of firms in that market. Clayton M. Christensen’s Theory of Disruptive Innovation is now more than 20 years old, but it still holds a prominent place in business strategy. A disruptive technology or disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network.
Despite broad dissemination, the theory’s core concepts have been widely misunderstood and its basic tenets frequently misapplied.

Unfortunately, the theory has also been widely misunderstood, and the "disruptive" label has been applied too carelessly anytime a market newcomer shakes up well-established incumbents. Excerpted with permission by Harvard Business Review.

For the past 20 years, the theory of disruptive innovation has been enormously influential in business circles and a powerful tool for predicting which industry entrants will succeed. This paper is devoted to integrate and discuss the latest arguments on the Disruptive Innovation theory, and to provoke questions for further research.

The original concept has gained widespread currency among practitioners, and the term disruption has entered the prevailing business lexicon (Christensen et al., Journal of Management Studies 55:7 November 2018 The theory of disruptive innovation 1 presents some intriguing inconsistencies. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect.

“Disruptive” describes the potential outcome of a specifictypeofinno-vation rather than the actual outcome. King and Baatartogtokh (2015) argued that Christensen's (2016) theory of disruptive innovation has value but should be applied sparingly and in the right situation.


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