Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions

Abstract

We present a model that explains how established firms create breakthrough inventions. We identify three organizational pathologies that inhibit breakthrough inventions: thefamiliarity trap– favoring the familiar; thematurity trap– favoring the mature; and thepropinquity trap– favoring search for solutions near to existing solutions. We argue that by experimenting withnovel(i.e., technologies in which thefirmlacks prior experience),emerging(technologies that are recent or newly developed in theindustry), andpioneering(technologies that do not build on any existing technologies) technologies firms can overcome these traps and create breakthrough inventions. Empirical evidence from the chemicals industry supports our model. Copyright © 2001 John Wiley & Sons, Ltd.