Enacting disruption: how entrepreneurial ventures innovate value propositions to increase the attractiveness of their technologies

Abstract

PurposeEntrepreneurial ventures aspiring to disrupt existing market incumbents often use business-model innovation to increase the attractiveness of their offerings. A value proposition is the central element of a business model, and is critical for this purpose. However, how entrepreneurial ventures modify their value propositions to increase the attractiveness of their comparatively inferior offerings is not well understood. The purpose of this paper is to analyze the value proposition innovation (VPI) of aspiring disruptors.Design/methodology/approachThe authors used a flexible pattern matching approach to ground the inductive findings in extant theory. The authors conducted 21 semi-structured interviews with managers from startups in the global electric vehicle industry.FindingsThe authors developed a framework, showing two factors, determinants and tactics, that play a key role in VPI connected by a continuous feedback loop. Directed by the determinants of cognitive antecedents, development drivers and realization capabilities, aspiring disruptors determine the scope, focus and priorities of various configuration and support tactics to enable and secure the success of their value proposition.Originality/valueThe authors contribute to theory by showing how cognitive antecedents, development drivers and capabilities determine VPI tactics to disrupt existing market incumbents, furthering the understanding of configuration tactics. The results have important implications for disruptive innovation theory, and entrepreneurship research and practice, as they offer an explanatory framework to analyze strategies of aspiring disruptors who increase the attractiveness of sustainable technologies, thereby accelerating their diffusion.

Unravelling open innovation determinants and firm performance relationships in CEE and SEE countries

“…Building on the insights generated in the discussion above, our analytical exploration of the pathways takes root in this understanding. Moreover, our exploration aligns with the acknowledgement of potential failures and the need for organizations to navigate these challenges strategically (Antonio et al. , 2023; Bamel et al.…”

“…Building on the insights generated in the discussion above, our analytical exploration of the pathways takes root in this understanding. Moreover, our exploration aligns with the acknowledgement of potential failures and the need for organizations to navigate these challenges strategically (Antonio et al, 2023;Bamel et al, 2022;Chesbrough, 2024). As we embark on this analytical journey, we recognize the interconnected nature of these challenges and their implications for organizational resilience in the dynamic context of OI within SEE and CEE.…”

“…The multifaceted lens becomes indispensable as we delve into the complexities of OI, considering the significance of organizational culture, the challenges within collaborative networks and the imperative of adaptability for resilience. The identified pathways offer a nuanced perspective, aligning with the broader discourse on the intricacies and multifaceted nature of OI challenges and successes (Antonio et al, 2023;Meyer et al, 2023).…”