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Effectuation Publications Library
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Immortal Firms in Mortal Markets? An Entrepreneurial Perspective on the Innovator’s Dilemma.
2008
Saras Sarasvathy Nick Dew Stuart Read Rob Wiltbank
“The Innovators’ Dilemma” consists in the fact that by doing the right thing – i.e., listening to current customers, leading firms often end up losing their markets to upstart newcomers. Therefore, understanding how entrepreneurs successfully create such upstart firms and new markets ought to have direct implications for strategic management theorizing about this dilemma. This paper examines such implications of some recent developments in entrepreneurship and outlines how effectual reasoning may be used to overcome the innovators’ dilemma in large corporations. The paper also identifies new questions for future research in the overlap between strategic management and entrepreneurship.