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New ways of knowledge reprocessing: Absorptive capacity characteristics needed for the big bang disruption of free smartphone navigation applications

Werner, Patrick (2014) New ways of knowledge reprocessing: Absorptive capacity characteristics needed for the big bang disruption of free smartphone navigation applications.

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Abstract:TomTom’s share price and revenue generated from the consumer market have decreased dramatically during the last years. The purpose of this paper is to examine the reasons behind this sudden drop, which has started to take its course at the end of 2007. Therefore this paper links the theory of big bang disruptions to the concept of absorptive capacity. This way the paper aims at providing a foundation for future research. In order to do so, this investigation draws on qualitative research methods. Secondary data is gathered from diverse sources and then associated to the applicable absorptive capacity phase. Based on the absorptive capacity phases, this paper outlines characteristics a firm needs for either conventional radical innovations or big bang disruptions. With the help of these elements, the research detects a lack of absorptive capacity characteristics needed for big bang disruptions on the part of TomTom. By proving that TomTom has to build up a different absorptive capacity than usual to meet the challenges of big bang disruptions, this research offers valuable insights into the concept of absorptive capacity. The information that the kind of absorptive capacity determines the type of innovation a firm pursues adds new value to scientific literature.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/65269
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