Rethinking disruptive innovation: unravelling theoretical controversies and charting new research frontiers

Abstract

ABSTRACT For more than two decades, disruptive innovation theory (DIT) has stood as one of the most influential business theories of the 21st century. Despite its widespread impact and the extensive scholarly work it has inspired, DIT has encountered divergent views among academics, sparking debates over its evolution and applicability. This essay dives into these debates, methodically unraveling and highlighting key critiques and controversies shaping the discourse around DIT. These controversies include definitional ambiguity, the case-study conundrum, challenges in generalizability, issues in defining a unit of measure, biases in assessing DIT outcomes, and the exploration of its predictive and prescriptive potential. By synthesizing and recalibrating existing theoretical disputes and distinguishing between critique and controversies, we shed new light on often overlooked or unresolved issues, particularly outcome bias and the theory’s performative capabilities beyond its predictive or prescriptive scope. Introducing a novel “challenger-incumbent perspective,” our analysis extends the discussion beyond the traditional dichotomy between established organizations and disruptors. In conclusion, we pave the way for future research directions, aiming to deepen our understanding and enhance the practical application of this influential yet contested concept.