An empirical study of the antecedents for radical product innovations and capabilities for transformation

Products of a completely new kind have the potential to seriously change the balance of power in existing markets or even to create new markets. But what factors favor radical product innovations? Working from an understanding of the discontinuities associated with radical innovations, an explanatory model emerges, which underlines the meaning of the transformation processes from the point of competencies available and markets addressed.In this paper, we report on a quantitative, empirical study in some highly innovative industries. Our findings indicate that specific organizational and cultural characteristics work as antecedents for the required capabilities for transformation. These capabilities increase the propensity of an established company to introduce radical product innovations.