Three avenues of innovation for new market creation and growth

Abstract

PurposeTo present a holistic picture of the three paths to new market creation, what leads to one form of market creation over another, and how each path triggers a different balance between disruptive and nondisruptive growth.Design/methodology/approachThe authors present “A Growth Model of Market-Creating Innovation Strategy” based on their three decades long research journey from blue ocean strategy to what Kim and Mauborgne have come to call “nondisruptive creation,” creation without destruction or disruption.FindingsThe authors’ found that what triggers one type of market-creating innovation over another comes down to the type of problem or opportunity an organization sets out to address. Offering a breakthrough solution to an industry’s existing problem is the path to disruptive creation and disruptive growth. Identifying and solving a brand-new problem or seizing a brand-new opportunity outside existing industry boundaries sets you on the path to “nondisruptive creation” and nondisruptive growth. Between these two ends of the market-innovation spectrum is redefining an existing industry problem and then solving the redefined problem. This is the essence of blue ocean strategy, which generates a more balanced blend of disruptive and nondisruptive growth.Practical implicationsLeaders can be more intentional and move beyond chance to consciously direct their efforts to the type of market innovation they choose to nurture, and deliberately put their resources behind it. Leaders learn the path to nondisruptive creation where their current business is not disrupted by the initiative and where economic growth and social good are not trade-offs.Originality/valueThe article offers a unique overview of the three dominant paths to market-creating innovation – disruption, blue ocean strategy, and nondisruptive creation – and their different impacts on growth.