Abstract
There is a growing understanding of how incumbent firms successfully commercialise nascent technology. However, there is less understanding of why firms follow their disparate strategic trajectories. We draw upon insights in the organisational identity literature to investigate why IBM and Corning commercialised the fiber optic technology differently, given they were both technology-driven diversified corporations and initiated high investments in fiber optics when it was beginning to commercially emerge in communications. Our qualitative study investigates how and why that IBM’s customer-focused identity and Corning’s science-focused identity explain why they entered the fiber optic market along such distinct trajectories. We explore the relationship between identity and strategy as a duality, in that they cannot be understood as separate and distinct from each other but are as two sides of the same coin. We offer that understanding this relationship yields insights into why and how firms can follow different trajectories in the successful commercialising of nascent technology.
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