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In the face of disruptive innovations, incumbent firms frequently encounter substantial rigidity in business routines. Our article iestigates the role of top management teams to overcome this inertia. Based on a literature review including strategy, organizational and psychological research fields, we conducted four case studies in the European airline industry and collected data from qualitative interviews with senior executives. As a result, we find new causal factors for routine rigidity in four groups, namely knowledge insufficiencies, inadequate self-concept, inflexibilities and financial concerns. Further, we propose a comprehensive set of top management team characteristics along individual members, team structure and team process, which influence the impact of the identified causal factors to ultimately lower routine rigidity. Our findings uniquely link existing research streams and allow practitioners to better prepare incumbent firms for future disruptive change.
Oliver Viellechner addresses the response behavior of incumbent firms when facing discontinous change by innovative business models. Almost always, this entails a problem of inertia, i.e. the sluggishness of incumbent response due to insecurity in deciding on an adequate response strategy. Viellechner iestigates the disruptive change in the European airline industry during the 1990s, when low-cost airlines severely challenged established carriers. By conducting four case studies, he identifies new causes of inertia and reveals the role of top management teams in improving incumbent firms' responsiveness.