How Incumbent Firms Respond to Emerging Technologies: Comparing Supply-Side and Demand-Side Effects

Birkinshaw, J (2023) How Incumbent Firms Respond to Emerging Technologies: Comparing Supply-Side and Demand-Side Effects. California Management Review, 66 (1). pp. 48-71. ISSN 0008-1256 OPEN ACCESS

Abstract

A perennial challenge for executives in established firms is deciding how and when to respond to emerging technologies. This article demonstrates that the way emerging technologies play out in established industries differs according to how the business system is affected. Some have primarily a supply-side effect (on how a firm in the industry creates its product), while others have a primarily demand-side effect (on how users consume the product). Supply-side effects play out over relatively long periods of time in a predictable way, with incumbent firms executing similar strategies though at different speeds. Demand-side effects are faster-acting and more volatile, with incumbents often experimenting with a range of different business models as they seek a viable way forward in a changing market. By understanding these important differences between supply-side and demand-side effects and being able to anticipate the typical patterns of responses from incumbents, executives can make better choices in how and when to invest in emerging technologies.

More Details

[error in script]
Item Type: Article
Subject Areas: Strategy and Entrepreneurship
Additional Information:

© The Regents of the University of California 2023

Date Deposited: 18 Sep 2023 12:29
Date of first compliant deposit: 26 Sep 2023
Last Modified: 20 Apr 2024 01:19
URI: https://lbsresearch.london.edu/id/eprint/2941
[error in script] More

Export and Share


Download

Published Version - Text
  • Available under License

Statistics

Altmetrics
View details on Dimensions' website

Downloads from LBS Research Online

View details

Actions (login required)

Edit Item Edit Item