A new approach for overcoming innovator's dilemma: the catastrophe matrix of self-disruption

Abstract

Managing uncertainty or discontinuity in innovation is still a challenge to most companies. The dynamics between discontinuous innovation and incumbents inspires the interest of researchers and managers. The main concern of this paper is to find a method for overcoming innovator's dilemma from the viewpoint of incumbents. That is to say, this paper aims to improve C. M. Christensen's disruption strategy. This paper employs catastrophe theory as a theoretical basis to explain the driving force of new discontinuous change. We undertook a case study based on catastrophe theory to interpret the dynamics between discontinuous innovation and incumbents. First, we classified the dynamics between discontinuous innovation and incumbents from the collected innovation examples. Second, we identified the driving force of new discontinuous change, and, finally, observed the discontinuous market dynamics from catastrophe theory. We discovered the catastrophe matrix of self-disruption as a new approach for overcoming innovator's dilemma. The catastrophe matrix proposed in this study may contribute to a useful methodological framework for future empirical applications.