Large, established companies typically focus on developing sustaining technology. Disruptive technologies typically come from smaller startup companies or even a single innovator working out of his or her garage. What are some possible explanations for this trend?
Big companies are facing a challenge to establish and maintain disruptive technologies because some are dominant and want to protect their market. They also lack innovation strategy.
Explanation
Big companies are moving from disruptive innovation to sustaining innovation because competition may arise in future to make customers shift for better alternatives. Such companies face a dilemma: to sustain their current successful markets but lose future opportunities due to changing trends in users. For example Blackberry Company could not risk to venture into high sensitive screen touch phones to compete with iPhones in 2007 that was taking the market. By 2013, they have lost half of their earning s and thousands of workers losing their jobs with the company.
A large company may not want to spend the money, time, and resources to create a new technology, especially if its failure may damage the company’s reputation
