Radical Technological Research Articles

Questioning Organizational Identity During Radical Technological Change

Questioning Organizational Identity During Radical Technological Change

How do Stock Market Expectations Condition Incumbents’ Response to Radical Technological Change?

How do Stock Market Expectations Condition Incumbents’ Response to Radical Technological Change?

The Effects of CEO-TMT Shared Cognition on Radical Technological Innovation

The Effects of CEO-TMT Shared Cognition on Radical Technological Innovation

“Surfing” Radical Technological Change. Knowledge Relatedness and Firm’s Inventive Impact

Radical technological changes often render obsolete most of the knowledge held by firms. What kind of knowledge then, allows firms to adapt in the presence of radical technological change? Research suggests that firms can adapt by deploying in-house knowledge within the domain that the technological change is based on. However, it is also conceivable that knowledge developed in other domains and/or acquired from external sources may assist adaptation in the face of such change. Research does not address this issue and is, therefore, silent about what is the best mode of knowledge recombination to adapt to radical technological change. To help resolve this issue, we apply an inductive empirical strategy and analyze patents granted within photography, in the context of the industry’s 30-year paradigm shift from chemical to digital technology (1974-2004). Our results show that leveraging prior own experience within the emerging knowledge domain has positive, but smaller, effects on firms’ inventive impact (measured as forward citations), than leveraging knowledge from related, and even unrelated domains (albeit to less extent). Moreover, when the leveraged knowledge is external, this improve inventive impact for all types of knowledge domains

Technological Frame Tuning: How TMTs Give Sense to Employees about Radical Technological Change

Studies show that top management team (TMT) sensemaking influences technology adoption decisions, but less is known about how, once they have decided to adopt a new technology, TMTs give sense to employees about a new technology’s relevance for organizational work. This is a critical step in implementing a strategy centered on a new technology, yet how it occurs is puzzling. The nature and meaning of new technologies is unknown ex ante; they evolve over time; and until they are used in organizational work, their precise relevance may be unclear to TMTs. In this paper, I draw on rare, real-time, multi-level ethnographic data collected over two years at an advertising firm to build theory on how TMTs give sense to employees about a new technology’s relevance for organizational work when implementing a strategy intended to capitalize on it. My data show that TMT sensegiving in this condition is an iterative, dialectical process where the TMT introduces a narrative about a technology’s relevance for organizational work for employees; senses tension between the narrative and the organization’s ability to create value with it; then adjusts the narrative to accommodate this tension. I refer to this as technological frame tuning, and I observed three cycles of the TMT engaging in it at the firm. This study enhances our theoretical understanding of TMT sensegiving under conditions of uncertainty and offers a reconceptualization of the work of leading organizations through periods of radical technological change.

Exploring the Formation Mechanism of Radical Technological Innovation

This paper identifies three stages in the radical technological innovation process, namely formation process in niches, breaking out of niches and entering regimes, and new regime formation. It then adopts Multi-level Perspective (MLP) to explore the formation process, operating mechanism, breakthrough path, and impact factors of radical technological innovation. A three-phase model, which includes formation of radical innovation, breakout of radical innovation, and new regimes construction, is proposed to analyze radical technological innovation. The model is adopted in a case study to analyze the leapfrogging development of technologies in China’s mobile communication industry. This paper enriches technological innovation theory and provides supports for policy making and guidance for industries/enterprises practices regarding technological innovation in emerging economies.

The Partnership Network Structure of Automakers under Radical Technological Change

Abstract Background: Traditionally, dense network structures have dominated partnerships in the automotive industry. On the other hand, previous research in other industries has shown that network structures suitable for radical innovation include weak ties, structural holes and betweenness centrality. Objective: The purpose of this research is to empirically analyse the effect of the ongoing and radical change in the business environment within the automotive industry, referred to as CASE (connected, autonomous/automated, shared, and electric), on the network structure of the partnerships of automobile manufacturers. Methods/Approach: The methodology of this study is based on the use of real data on partnerships of car manufacturers around the world, analysed using social network analysis methods. Results/Findings: The analysis confirms that there is a significant correlation between the degree of the CASE approach, the number of weak ties and the size of structural holes. In addition, several cases showed significant differences in the network structure between new technology ventures and existing legacy technology firms. The findings highlight the insight that the network structure of the automotive industry is likely to change significantly in the future due to technological innovation.

Exploring the Formation Mechanism of Radical Technological Innovation

This paper identifies three stages in the radical technological innovation process, namely formation process in niches, breaking out of niches and entering regimes, and new regime formation. It then adopts Multi-level Perspective (MLP) to explore the formation process, operating mechanism, breakthrough path, and impact factors of radical technological innovation. A three-phase model, which includes formation of radical innovation, breakout of radical innovation, and new regimes construction, is proposed to analyze radical technological innovation. The model is adopted in a case study to analyze the leapfrogging development of technologies in China’s mobile communication industry. This paper enriches technological innovation theory and provides supports for policy making and guidance for industries/enterprises practices regarding technological innovation in emerging economies.

Providers' Perceptions of Radical Technological Innovation (RTI) in Healthcare: An Exploratory Study Using Chatbot Technology as an Exemplar

Providers' Perceptions of Radical Technological Innovation (RTI) in Healthcare: An Exploratory Study Using Chatbot Technology as an Exemplar

District Heating Tariffs, Economic Optimisation and Local Strategies during Radical Technological Change

This paper addresses economic aspects of heat savings in the context of strategic heat planning. The analysis uses the city of Aalborg, Denmark, as a case where municipalisation through a recent acquisition of a coal-fired cogeneration of heat and power (CHP) plant has made an update of a municipal strategic energy plan necessary. Combining datasets on buildings and insulation techniques with economic methods, we investigate how the local district heating tariff can be adapted to improve the conditions for heat savings and support the transition to lower supply temperatures in line with the requirements of future fourth generation district heating systems. The paper concludes that implementing a fully variable heat tariff scheme improves the financial incentive for heat savings, while also making the system development less vulnerable to fluctuations and shortages in capital markets. The paper supplements existing literature on heat savings with novelty in its approach and in its systematic investigation of the interplay between tariff policies and interest rates.

Understanding the motivations of technology managers in radical innovation decisions in the mature R&D firm context: An Agency theory perspective

Abstract Economic and management theory predicts that mature R&D organizations will underinvest into radical technological innovation. Recent research, however, highlights how many established R&D companies often do aggressively invest into radical innovation, but never truly reap the full benefits of their early investments. In order to investigate this paradox, we ground our paper in Agency-theory and focus on the role corporate governance plays in enabling R&D project managers and their teams to commercialize radical technologies. We use a longitudinal multi-case comparison design to examine the corporate governance systems of twelve industry-leading companies, all with a strategic mandate to commercialize radically innovative technologies on a continuing basis. Agency theory’s explanation for this puzzle is that incumbent firms struggle with radical innovation because opportunistic managers overinvest free cash flows into radical ideas, with limited commercial value. Yet, our unique access to the complete process of radical innovation shows that the challenge lies less in the middle manager’s desire to enrich themselves at the expense of the shareholders. On the contrary, it arises more from a failure to suitably select, incent and monitor the commercialization activities associated with technological innovation, the farther removed it is from the initial recognition of the opportunity.

Diving into strange waters: incumbent adoption of emerging radical technology

The timing of incumbent firms' adoption of emerging radical technologies has important implications for firms and industries as well as for technological progress. Much is known about factors that lead to successful innovation or adaption to radical technological change, yet little empirical research has examined factors that distinguish between incumbents that choose to be early adopters versus those who do not. From a survey of key informants in firms facing emerging radical technologies, we compare early adopters versus other firms on variables related to learning capacity and technological capabilities. Findings suggest that early adopters possess greater pre-exploitative learning capabilities that enable faster and more effective issue interpretation. Early adopters also perceive they possess greater technological knowledge and commercialisation flexibility advantages over rivals that motivate early adoption moves even in the face of extreme uncertainty.

Diving into strange waters: incumbent adoption of emerging radical technology

The timing of incumbent firms' adoption of emerging radical technologies has important implications for firms and industries as well as for technological progress. Much is known about factors that lead to successful innovation or adaption to radical technological change, yet little empirical research has examined factors that distinguish between incumbents that choose to be early adopters versus those who do not. From a survey of key informants in firms facing emerging radical technologies, we compare early adopters versus other firms on variables related to learning capacity and technological capabilities. Findings suggest that early adopters possess greater pre-exploitative learning capabilities that enable faster and more effective issue interpretation. Early adopters also perceive they possess greater technological knowledge and commercialisation flexibility advantages over rivals that motivate early adoption moves even in the face of extreme uncertainty.

Assessing the emergence of bioeconomy by the radical technology inquirer tool

This paper reports research results from the application of the Radical Technology Inquirer (RTI) approach on the emergence of bioeconomy as part of the mega wave of socio-technical change that has taken off with the global financial crisis of ca. 2008 and is expected to peak around 2030. The appearance of bioeconomy-related phenomena on this wave was found to be strongly related on the one hand to eight Global Value-Producing Networks (GVNs), and on the other hand on 14 Radical Technological Solutions (RTS). A correlation of these two types of findings reveals an even smaller number of highly promising global value networks (on health, quality of life, and governance) and technological breakthroughs (on DNA research, biosensors, and industrial use of GMOs). The latter appear to follow mostly converging technological pathways, with the bio-info convergence pattern playing the dominant role.

The geographic origins of radical technological paradigms: A configurational study

History and place matter for the emergence of new technological paradigms. However, limited empirical evidence exists that reflects the characteristics that support or hinder the development of radical technologies within regions. In this study, we theorize geographic regions as distinct socio-economic-political systems with different resources for radical technological development. We integrate evolutionary economic geography and technology management literatures with universities positioned as key drivers for radical technology development within regions. We use the creation of a university research center for a radical technological design as evidence of new technology paradigm emergence. The framework explains the influence of intellectual, industry, social, and political characteristics on the geographic origins of radical technological paradigms. It is tested using a configurational approach – fuzzy set qualitative comparative analysis – in the emerging fuel cell technology context, which is a radical paradigm for energy generation. The sampling frame includes 48 metropolitan statistical areas in the United States. The findings reveal five unique configurations that lead to the presence of a new paradigm within regions, and five different configurations that are associated with its absence.

Decoding the Adaptability–Rigidity Puzzle: Evidence from Pharmaceutical Incumbents’ Pursuit of Gene Therapy and Monoclonal Antibodies

The emergence of radical technologies presents a significant challenge to incumbent firms. We study firms’ management of radical technological change by separating their actions into upstream research (the “R” of R&D) and downstream development (the “D” of R&D). We introduce two contingencies to explain when incumbents’ research investments in radical technologies translate into product development and when these upstream investments may get voided by organizational inertia downstream. First, radical technologies can differ in how they conform to incumbents’ existing business models, impacting the extent to which the movement of research outputs toward development will be subject to inertial pressures. Second, incumbents can invest in a radical technology through a variety of modes (internal research, external research contracts, alliances, acquisitions). These modes represent unique combinations of who does research and who is involved in the decision for subsequent development, and, hence, differ in the extent to which they are shielded from inertial pressures. This difference helps explain why incumbents, despite responding to radical technologies, may still be unable to adapt, as well as what types of investments will be more effective in helping firms navigate technological change. Evidence from pharmaceutical incumbents’ pursuit of monoclonal antibodies and gene therapy offers strong support for our arguments.

Social Influence in Adoption of Radical Technology by Incumbent Inventors

Irrespective of the path(s) an incumbent firm takes to adapt to the competence-destroying radical technological change, the radical technology needs to be diffused among firm inventors for the incumbent firm to develop R&D capability in the radical technology. In this paper, we explore which inventors in the incumbent firm are likely to adopt radical technology in their innovation activities sooner than others. Using heterogeneous diffusion model, we find that the social proximity of an incumbent inventor to the inventors who already adopted radical technology increased the speed of adoption. We also found that incumbent inventors who were highly central in the intra-firm prevailing technology inventor network were less susceptible to the influence of information about radical technology while inventors spanning many structural holes were highly susceptible. Our findings have theoretical implications for research on radical technological change, intra-firm inventor networks and intra-firm organizational learning.

Securities Analysts and Incumbent Response to Radical Technological Change: Evidence from Digital Photography and Internet Telephony

A large body of research has explored the factors that impede established firms' responses to radical technological changes. While it is widely acknowledged that managers face pressures from financial markets to choose strategies that maximize shareholder value, little work in the technological change literature has considered the possible influences of public equity markets and the securities analysts who mediate them on incumbent firms challenged with technological change. In this paper, I begin to address the topic by empirically exploring how securities analysts react to the different strategies undertaken by incumbent firms faced with radical technological change. I study the question in two settings: the shift to digital technology in photography and the advent of Voice over Internet Protocol (VoIP) technology in wireline telecommunications. I find evidence that analysts are more attentive and positive toward incumbents' strategies that extend and preserve the existing technology than toward strategies that respond directly to the new technology. In these settings, analysts largely ignore incumbents' strategies that directly incorporate the new technology for several years following the discontinuity. This study provides insights into the nature and direction of analysts' reactions to firms' strategies in the context of technological change, and is a first step toward better understanding of the potential role of analysts' and financial markets in incumbent adaptation.

The Development and Diffusion of Radical Technological Innovation: The Role of Bus Demonstration Projects in Commercializing Fuel Cell Technology

North American, European and Japanese governments have legislated to control Greenhouse Gas emissions and have promoted alternative technology as part of strategies to address climate change. Governments worldwide have sought to encourage adoption of alternative automotive technology by funding demonstrations and in-service trials. Among other initiatives the automotive industry has explored applications of a radical technological innovation—fuel cells—to power a range of vehicles from forklifts to buses. This paper examines the rationale and actions of various stakeholders to facilitate adoption of fuel cell technology in vehicles through a specific market segment—that of fuel cell buses (FCBs)—and explores the progress of FCB projects in North America, Europe and Japan. It examines the role of demonstration projects and highlights the complexity of the relationship between government and developers, and the multifarious and conflicting objectives of industry players that inhibit progress.

Organizational Culture and Radical Technological Change: The Railway Locomotive Industry During the Twentieth Century

Beginning in the 1930s, North American railroads began replacing their steam locomotives with diesels at an ever-accelerating rate. Established steam locomotive producers, most notably the American Locomotive Company and the Baldwin Locomotive Works, proved incapable of dealing with this radical technological discontinuity. As successful steam locomotive manufacturers, these firms developed a corporate managerial culture that was not only linked closely to steam locomotive technology; it also embodied the fundamentals of small-batch custom manufacturing. More successful competitors, such as Electro-Motive (later a division of General Motors), developed a corporate culture amenable to both diesel locomotive technology and the standardized near-mass-production techniques that made diesel production efficient and profitable. Electro-Motive executives understood that railroad customers increasingly valued performance characteristics (flexibility, lower operating costs) best fulfilled by diesels, while steam locomotive producers continued to concentrate on the outdated characteristics (horsepower, low initial cost) of steam locomotive technology.