Importance of CEO attention in influencing incumbent responses to disruptive innovation

Importance of CEO attention in influencing incumbent responses to disruptive innovation

This study investigates incumbent firm responses to disruptive innovation in the rapidly evolving South Korean retail industry. The study explores the factors behind an incumbent firm's decision-making processes when responding to disruptive innovation and examines the reasons behind varied inc...

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Bibliographic Details
Published in:Administrative sciences Vol. 13; no. 6; pp. 1 - 20
Main Authors: Gha, Heesun, Kim, Min Young, Ro, Hyeon Jin, Choi, Seungho
Format: Journal Article
Language:English
Published: Basel MDPI 01-06-2023
MDPI AG
Subjects:
Case studies
CEO attention
Chief executive officers
Christensen, Clayton Magleby
Decision making
Disruptive innovation
e-commerce
Emerging markets
Incumbency
incumbent response
retail
Retail industry
Technological change
South Korea
Japan
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Summary:This study investigates incumbent firm responses to disruptive innovation in the rapidly evolving South Korean retail industry. The study explores the factors behind an incumbent firm's decision-making processes when responding to disruptive innovation and examines the reasons behind varied incumbent responses. It investigates the agents that influence a firm's decision by conducting the qualitative case study of a South Korean retail giant, Lotte. By collecting archival data from various sources, this paper was able to analyze different interviews and statements of the chief executive officer (CEO). From the analysis, it was determined that the firm's overall actions were aligned with the CEO's assertions. Thus, this paper asserts that Lotte's response to disruptive innovation was directly influenced by the CEO's attention. The results of this study further add to the discourse of disruptive innovation by highlighting the importance of CEO discretion in deciding a firm's direction and by further emphasizing the relationship between managerial leadership and innovation.
ISSN:2076-3387
2076-3387
DOI:10.3390/admsci13060142