BREAKTHROUGH INNOVATION DILEMMAS

While large firms have demonstrated their ability to succeed in breakthrough technology innovations, they have difficulty succeeding with breakthrough business-model innovations. A second current in the preliminary research identified five key dilemmas that companies face in pursuing business-model innovation: 1. paradoxical leadership, 2. organizational complexity, 3. innovation management, 4. financial uncertainty, and 5. team prior knowledge. Having identified the key dilemmas and formulated a model, the authors set out to better understand how companies manage these dilemmas. They are performing a series of paired case studies, in which each participant company offers for study at least one failed and one successful business model innovation project. New business model innovation continues to represent a significant challenge for large incumbent firms despite their access to resources, market knowledge, and key technologies.