2_8_ent.html

3/7 INCUMBENT FAILURE AND NEW FIRMS

Henderson, R., and Clark, K. 1990. "Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms." Administrative Science Quarterly, 35: 9-30.

Christensen, C., and Bower, J. 1996. "Customer power, strategic investment, and the failure of leading firms." Strategic Management Journal, 17: 197-218.

Why do Henderson and Clark believe that established firms fail in the face of "architectural innovations"?
Why do Christiansen and Bower believe that established firms fail in the face of radical innovation
Compare Henderson and Clark"s explanation for the failure of established firms with that of Christiansen and Bower. How are they similar? How do they differ?

Case: Continuous Casting Investments at USX Corporation, (HBS #9-697-020)
Note: Trends in the United States Steel Market, 1980-1996, (HBS #N9-698-018)

Do you think Kappmeyer should sign the proposal? Why or why not?

What position should USX take with respect to CSP technology?

Download notes

BACK TO CALENDAR