Incumbent Business Model Innovation Under Misperceived Hypercompetition

Kristian J. Sund, Annesofie Lindskov

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Hypercompetition theory states that incumbent firms must restructure their organizations, resources, and product portfolios, as competitive advantages cannot be sustained over time. Yet, hypercompetition is rarer than many scholars and practitioners suggest. In this paper, we suggest thatif managers misperceive the true state of competition in their industry, they run two potential risks. The first is to underestimate the competitive dynamics and to therefore focus too much on incremental changes to their existing business model. The second is to overestimate the dynamics and to waste resources on unnecessary radical business model innovation. In this chapter we discuss these risks in light of recent research on both hypercompetition and on incumbent business model innovation.
Original languageEnglish
JournalJournal of Business Models
Volume10
Issue number1
Pages (from-to)11-18
Number of pages8
ISSN2246-2465
DOIs
Publication statusPublished - 2022

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