Obstacle of Cannibalization Effect in Enterprise's Sustaining Technological Innovation:Mechanism, Risks and Countermeasures
Zhang Yu1, 2, Ding Changqing1
1.Business School, Hohai University, Nanjing 210098, China;2.School of Marxism School, Nanjing University of Posts and Telecommunications, Nanjing 210023, China
Abstract:Cannibalization effect of enterprise's sustaining technological innovation has negative hindering function on the enterprise's conversion between the old and new technologies, products, business models, and even the smooth transition of the enterprise.It arises mainly from four dimensions of effect, which are“speed”, “diversity”, “destruction”and“business model”dimensions.To deal with the potential risks of the cannibalization effect, enterprise needs to balance its innovation speed between competitors and market demand, minimize the overlap of the target market of technological products, highly concern about the limits of technology and potential alternative technologies, and pay close attention to the revolution of the related industries which are involved in the value network or innovation ecosystem.