Toward A Typology of Incumbent Response to Disruptive Business Model Innovations

Abstract

Disruptive business models are interesting phenomena due to the potentially radical impact they have on incumbent industries. Although typologies of disruptive business models are beginning to take shape, the few established typologies focus on specific factors. Even though they are promising, a comprehensive, yet generalized typology has yet to be derived to enrich the diverse literature. Using inductive theory, we develop a typology of the incumbents’ responses to disruptive business models in order to further advance research in the field, basing on the salience of the business model and managerial interpretation. In this paper, we investigate four specific industry cases and the respective disruptive business models. The industry incumbents are Enterprise Servers, TV Networks, Hospitality, and Taxi. The respective disruptors are Amazon and Microsoft, Netflix, Airbnb, and Uber and Lyft. We analyzed how the industry incumbents responded to these disruptions. The research contribution and implications are also discussed.