Strategic reactions to technology competition: A decision‐making model

Abstract

Purpose

This paper aims to develop a conceptual decision‐making model aimed at supporting managers' selection of alternative strategic reactions to technological change.

Design/methodology/approach

The paper begins with a literature review of strategic reactions incumbent firms have made to technological change. This is followed by an analysis and indication of the data needed/available in the strategic reaction decision‐making process.

Findings

The ability for an organization to understand its strategic position with regard to six items: possibility of old product revitalization; extent of disruption of innovation; old market competitive position; difficulty in entering in the new market; dynamic capabilities; old core capabilities; is critical when deciding a course of action in technologically competitive markets. Therefore, the hiring of external consultants (e.g. technology experts) is advisable beyond the normal knowledge managing practices used by the organization.

Originality/value

The paper extends literature on technology competition proposing a model (and a multiple‐item scale) for decision‐makers of incumbent firms in order to strategize when technological competition occurs.

Citation

Schiavone, F. (2011), "Strategic reactions to technology competition: A decision‐making model", Management Decision, Vol. 49 No. 5, pp. 801-809. https://doi.org/10.1108/00251741111130869