Disruptive innovation through a dynamic capabilities lens: an exploration of the auto component sector in India
by Deepak Pandit; Maheshkumar P. Joshi; Rajen K. Gupta; Arun Sahay
International Journal of Indian Culture and Business Management (IJICBM), Vol. 14, No. 1, 2017

Abstract: Innovation has gained momentum for the development; spread; and survival of auto industrial firms in India. In this paper; we study the less-explored aspect of organisational response focusing on discontinuous innovation. The Indian auto sector requires a tool for long-term market dominance; particularly owing to the rapid change in the business environment. This can be achieved through a special kind of discontinuous innovation known as disruptive innovation (DI). We further affirm how developing DI is facilitated by the firm's dynamic capability (DC); to substantiate our claims; we develop and utilise a survey instrument to test a hypothesised model with responses from various firms affiliated with the Indian auto component industry. Our findings confirm the positive roles of DC and research and development (R&D) expenditure as antecedents to DI. We further conduct exploratory analysis to study factors such as R&D and environmental turbulence as moderators of the DC-DI relationship. We offer the following contributions: the operationalisation of DC and DI for the Indian context, a sector specific study and critical results pertaining to moderating role of R&D and environmental turbulence on the positive DC-DI relationship.

Online publication date: Tue, 06-Dec-2016

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