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

• Published in: Technovation Vol. 25; no. 12; pp. 1400 - 1409
• Main Authors: Nijssen, Edwin J., Hillebrand, Bas, Vermeulen, Patrick A.M.
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier Ltd 01.12.2005; Elsevier Sequoia S.A
• Subjects: Cannibalization; Capabilities; Innovations; Organizational behavior; Organizational inertia; Product development; Radical innovation; Studies; Cannibalization; Organizational inertia; Product development; Radical innovation; Capabilities
• ISSN: 0166-4972; 1879-2383
• DOI: 10.1016/j.technovation.2005.03.004

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.