Articles - Chandy-Tellis 1998

7 important questions on Articles - Chandy-Tellis 1998

Willingness to cannibalize has a large relation with the capacity of a firm to innovate  C&T

- WTC is the willingness of a firm to spend money on (new) technologies that could replace their current technologies, and so gaining customers with the new technology, but losing customers for the old technology

WTC is determined by four factors;   C&T

- Specialized investments

- Internal markets: different business units that have a lot of autonomy and compete with other business units they    
    are more willing to cannibalize because; manager has more autonomy; does not care about the investments made

      and SBU managers compete with each other 

- Product champion influence; super innovative employees, when they have more influence; more wiling to    
   cannibalize

- Focus on future markets; potention and threats of competitors more easily

 

What did the statistical analysis show?  C&T

Firm size has no relation, willingness to cannibalize has an influence

 

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What do Chandy and Tellis conclude

- WTC is a good thing, radical innovation does not depend on the firm size but on the organizational set up of the
  company

Which view do the authors take to innovation ? chandy and tellis

- The propensity of a firm to introduce new products that 1) incorporate substantially different technology from existing products and (2) can fulfill key customer needs better than existing products. The authors think radical innovation is a good firm. 

How do they empirically examine the problem?  C&T

interviews 500 innovation managers of firms of different sizes and in different industries

200 replied, statistical analysis was done. Only took 4 factors, didn't looked at start-up firms, only looked at the high-tech industries. Also firm profitability/market share was not taken into account. There might be a difference between new large firms, and old large firms.

 

Which new elements do they bring to the discussion of innovation? (contributions)   C&T

- Firm size has no relation with capacity to innovate. Willingness to cannibalize does have a relation.

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