The innovator's dilemma as a problem of organizational competence

The role of embedded organizational competences in shaping the innovator's dilemma, which was presented in the 'The Innovator's Dilemma' published by Clayton Christensen, is discussed. The book suggests that it is irrational for the senior teams failing to invest in disruptive innovations. The author suggests that the incumbent firms failed to invest as the cost structure of the model and their distribution and sales channels were not competent. He has laid considerable stress on techniques firms use to understand new-market opportunities. Christensen's (1997) concept of disruptive innovation has had a dramatic effect on both practice and scholarly research.