Dynamic Commercialization Strategies for Disruptive Technologies: Evidence from the Speech Recognition Industry
Author(s)Marx, Matt; Gans, Joshua S.; Hsu, David H.
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When start-up innovation involves a potentially disruptive technology—initially lagging in the predominant performance metric, but with a potentially favorable trajectory of improvement—incumbents may be wary of engaging in cooperative commercialization with the start-up. While the prevailing theory of disruptive innovation suggests that this will lead to (exclusively) competitive commercialization and the eventual replacement of incumbents, we consider a dynamic strategy involving product market entry before switching to a cooperative commercialization strategy. Empirical evidence from the automated speech recognition industry from 1952 to 2010 confirms our main hypothesis.
DepartmentSloan School of Management
Institute for Operations Research and the Management Sciences (INFORMS)
Marx, Matt, Joshua S. Gans, and David H. Hsu. “Dynamic Commercialization Strategies for Disruptive Technologies: Evidence from the Speech Recognition Industry.” Management Science 60, no. 12 (December 2014): 3103–3123.
Author's final manuscript