The evolution mechanism of latecomer firms value network in disruptive innovation context: a case study of Haier Group

Abstract

The theory of disruptive innovation provides theoretical support for latecomer firms to achieve catching-up, in which value network is regarded as one of the important forces to drive disruptive innovation. However, little is known about how a latecomer firm changes its value network in the process of disruptive innovation to fulfill catching-up. To address this issue, it draws on the disruptive innovation theory and evolution perspective to investigate the evolution mechanism of latecomer firms’ value network in a disruptive innovation context. By using an exploratory case of Haier, a four-stage model is proposed to present the evolution process of value network matching with that of latecomer firms catching-up. Specifically, the evolution of value network is characterised as the changes in the configurations of value network, including value proposition, value subject, value activity, value relationship and value space, which are oriented by disruptive innovation context; and the catching-up process of latecomer firms in disruptive innovation context is divided into four stages, including the start-up period, fast-growing period, overall catching-up period and transformation period. It provides theoretical and practical implications for Chinese latecomers firms to fulfill catching-up through disruptive innovation.