Unraveling willingness to cannibalize: a closer look at the barrier to radical innovation

Abstract In the literature it has been suggested that willingness to cannibalize might explain why certain organizations are better at developing radical innovations than other organizations. Yet, a closer inspection of the literature suggests that organizations may cannibalize on previous investments, capabilities, and sales, lending support for the notion of a three-dimensional construct of willingness to cannibalize. The construct was then tested using a sample of Dutch companies. The results confirmed the three-dimensions of willingness to cannibalize. The construct and its dimensions showed anticipated different relationships with other NPD constructs, e.g. future market focus and risk posture of top management. In a second, larger study involving a panel of Dutch SMEs the construct was further checked and its effect on the type of new products developed investigated. Two out of three-dimensions of willingness to cannibalize were correlated with turning out more radical new products. There also was a positive correlation with financial performance. The results confirm that willingness to cannibalize is a multidimensional construct and plays an important role in predicting new product radicalness.

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