how entrants develop disruptive business models while navigating relational and contextual tensions

·         Introduction

This study explores how new market entrants develop disruptive business models while managing relational and contextual tensions with incumbents and stakeholders. Disruptive innovation is a process through which new entrants challenge the existing market order with innovative offerings. Entrants face relational tensions with incumbents, who may try to block their entry or co-opt them. Entrants also face contextual tensions, such as regulatory hurdles and the need to acquire complementary assets.

·         Subject/Title

The study investigates how entrants develop disruptive business models while navigating relational and contextual tensions.

·         Analysis

The study finds that entrants develop disruptive business models by strategically reconfiguring their alliance portfolios. They build alliances with partners who provide complementary resources and support, while avoiding alliances with incumbents that could hinder their disruptive path. Entrants also proactively manage their reputation and legitimacy to gain acceptance from stakeholders.

·         Objectives of the Study

The study aims to understand how entrants develop disruptive business models while managing relational and contextual tensions.

·         Context of the Study

The study focuses on new market entrants in the German insurance and fashion retail industries.

·         Conceptual Framework

The study draws on the relational view of disruptive innovation, which emphasizes the role of networks and alliances in enabling disruption.

·         Research Methodology

The study employs a process research approach, following six disruptive entrants over time. The study uses archival data, interviews, and observations to collect data.

·         Outcomes

The study finds that entrants develop disruptive business models by strategically reconfiguring their alliance portfolios. They build alliances with partners who provide complementary resources and support, while avoiding alliances with incumbents that could hinder their disruptive path. Entrants also proactively manage their reputation and legitimacy to gain acceptance from stakeholders.

·         Recommendations

The study suggests that entrants should focus on building alliances with partners who can provide complementary resources and support, while avoiding alliances with incumbents that could hinder their disruptive path. Entrants should also proactively manage their reputation and legitimacy to gain acceptance from stakeholders.