How useful is the theory of disruptive innovation

Abstract

Clayton M. Christensen's theory of disruptive innovation has had tremendous influence on the business world. Good managers face a dilemma, he argued, because by doing the very things they need to do to succeed listen to customers, invest in the business, and build distinctive capabilities they run the risk of ignoring rivals with disruptive innovations. Christensen and his associates have proposed disruption as a framework for thinking about vexing social problems such as poverty, lack of access to health care, illiteracy, and unemployment. Stories about disruptive innovation can provide warnings of what may happen, but they are no substitute for critical thinking. High-level theories can give managers encouragement, but they are no replacement for careful analysis and difficult choices. Following simple theories or using quick analogies may provide a sense of certainty, but they are no substitutes for careful, fundamental analysis of the nature of competition and the sources of competitive advantage.

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