the everything store jeff bezos and the age of amazon

This assessment reveals that our understanding of the phenomenon of disruption has changed as the theory has developed. We also trace the theory’s evolution from a technology‐change framework-essentially descriptive and relatively limited in scope-to a more broadly explanatory causal theory of innovation and competitive response. We trace the theory’s intellectual history, noting how its core principles have been clarified by anomaly‐seeking research. This inconsistent reception warrants a thoughtful evaluation of research on disruptive innovation within management and strategy. Similarly, foundational research on disruption has elicited frequent citation and vibrant debate in academic circles, but subsequent empirical research has rarely engaged with its key theoretical arguments. This paper was accepted by Bruno Cassiman, business strategy.read more read lessĪbstract: The concept of disruptive innovation has gained considerable currency among practitioners despite widespread misunderstanding of its core principles. We also provide some empirical evidence that supports our main results.ĭata, as supplemental material, are available at. We thus provide a theory of which products an intermediary should offer in each mode. If the reseller has a variable cost advantage respectively, disadvantage relative to the marketplace, then the trade-off is shifted toward the marketplace for long-tail respectively, short-tail products. We show that this trade-off is shifted toward the reseller mode when marketing activities create spillovers across products and when network effects lead to unfavorable expectations about supplier participation. Whether the marketplace or the reseller mode is preferred depends on whether independent suppliers or the intermediary have more important information relevant to the optimal tailoring of marketing activities for each specific product. We model this as a decision between whether control rights over a noncontractible decision variable the choice of some marketing activity are better held by suppliers the marketplace mode or by the intermediary the reseller mode. Abstract: Intermediaries can choose between functioning as a marketplace in which suppliers sell their products directly to buyers or as a reseller by purchasing products from suppliers and selling them to buyers.

The everything store jeff bezos and the age of amazon