Please use this identifier to cite or link to this item:
|Title:||Preconditions, windows of opportunity and innovation strategies: Successive leadership changes in the regional jet industry|
|Citation:||RESEARCH POLICY vol. 46 no. 2 p. 388-403|
|Publisher:||ELSEVIER SCIENCE BV|
|Type:||Articles in periodicals and books|
|Abstract:||We analyse the drivers of two successive leadership changes in the regional, or mid-sized jet market, a particularly dynamic segment of the commercial aircraft industry. In the first instance, Bombardier, a Canadian newcomer, assumed leadership over the incumbents, BAe and Fokker, in 1995. In 2005, the Brazilian firm, Embraer, became the market leader in terms of number of regional jet deliveries. Our theoretical framework considers discontinuities in the building blocks of sectoral innovation systems as windows of opportunity for which challenger firms can devise strategic responses allowing them to assume market leadership. It also considers preconditions as necessary capabilities limiting the number of potential challenger companies. The analysis of leadership change shows that more efficient engines and technological improvements in subsystems, changing oil prices, business cycles, liberalization of air transport services, scope clauses and government interventions provided technological, demand and regulatory windows of opportunity. Launching new aircraft families (an architectural innovation), targeting the 50- and the 100–120-seat niche markets gave first Bombardier’s CRJ family and later Embraer’s E-Jet family the leadership. The fate of failed challengers and incumbents point to the importance of incumbent traps, technological and financial capabilities, the timing of windows of opportunity, speedy strategic response, a proper evaluation of future demand and sheer luck, as long lead times and sunk costs entrap incumbents and other inadequately responding companies.|
|JRC Directorate:||Joint Research Centre Corporate Activities|
Files in This Item:
There are no files associated with this item.
Items in repository are protected by copyright, with all rights reserved, unless otherwise indicated.