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Author:Jiang, Yihua
Title:Influence of Recognition of Technological Discontinuity on Strategic Responses and Corporate Performance: Case Internet
Publication type:Master's thesis
Publication year:2005
Pages:v + 84 + liitt. (+2)      Language:   eng
Department/School:Tuotantotalouden osasto
Main subject:Yritysstrategia ja kansainvälinen liiketoiminta   (TU-91)
Supervisor:Maula, Markku
Instructor:Maula, Markku
OEVS:
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Location:P1 Ark Aalto  8946   | Archive
Keywords:technology discontinuity
management cognition
the Internet
content analysis
structural equation modeling
Abstract (eng):Technological discontinuities usually introduce substantial turbulence to an established industry and create both threats and opportunities to the incumbent companies.
It requires firms of recognizing the change, aligning their strategies and learning the knowledge and skills needed to overcome the difficulties in the era of ferment.
However, the inertia from the existing organization and perceptions usually limits the management's judgments to importance of the disruptive changes.
The fact that those who ignored the changes failed makes the recognition process critically important.

In this thesis, I made an extensive literature review, developed and tested hypotheses on the influence of recognition of technological discontinuity on the strategic responses and corporate performance.
I further predicted a direct influence of the recognition on the corporation performance.
I used the Internet as a technical discontinuity and employed longitudinal data for U.S. corporations in four information and communication technology industries.
The data coves the period from 1990 to 2001 during which the Internet was introduced to commercial markets and extensively applied in the business models.
To operationalize the recognition, I applied content analysis to inductively develop a dictionary for the Internet and used it to measure recognition of the Internet.
In the end, the structural equation modeling is used to test the hypotheses.

Supporting the hypotheses, I find that recognition of technological discontinuities has influence to strategic responses related to the new technology.
Furthermore, I find that such strategic responses are positively associated with corporate performances.
However, I did not find strong support for the direct link between the recognition of technological discontinuity and the corporate performance.
It is explained that the benefits from recognizing technological discontinuities to corporate performance perhaps need to be mediated by the strategic responses.
ED:2005-12-28
INSSI record number: 30437
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