The Role of Market Orientation in Incumbent Firm’s Defense Against Disruptive Innovations

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Journal Title
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Volume Title
School of Business | Bachelor's thesis
Date
2017
Major/Subject
Mcode
Degree programme
Markkinointi
Language
en
Pages
40
Series
Abstract
This bachelor’s thesis builds on the phenomenon of disruptive innovation and the business philosophy of market orientation. More specifically, it strives to study how market orientation could help incumbent companies to defend against disruptive innovations (i.e. avoid losing market share disruptive competitors). The main research methods are literature reviews as well as qualitative meta-analysis, which both help in the definition and discussion of the relevant concepts, such as market orientation and disruptive innovation. Based on the literature of innovation management and management practice research streams I identified four components which are crucial to incumbent’s defense against disruptive innovations: (1) early recognition of potential disruptions, (2) response strategy formulation, (3) response strategy implementation, (4) innovation ability. Subsequently, these items are cross analyzed with the existing literature of marketing orientation, resulting in a confirmation of marketing orientation’s positive effect on three of the components, namely 1, 3, and 4. The findings are significant, as they open a novel instance of market orientation’s indirect performance benefits. In addition, the thesis contributed to the disruptive innovation research by suggesting a broader approach to disruptive innovation responding
Description
Thesis advisor
Wittkowski, Kristina
Keywords
market orientation, disruptive innovation, strategic management, defense capability
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