How Disruptive Technology Leads to New Product Development in Emerging Markets

Abstract

Disruptive technologies refer to radical innovative products and services that change consumer behavior and industry norms. In this context, the chapter explores how consumers are drawn to new products and how to help them accept new products that are slightly or radically different from the norm. Our central proposition is that disruptive technologies lead to new product development and that their features should be moderately incongruent with pre-existing product category schemas for the products to be successful. Using schema-based theories—to interpret or organize information—and qualitative methods, the purpose of the chapter is to discuss (1) the mediating role of Innovation between Disruptive Technology and New Product Development (NPD); (2) the moderating roles of Digital Infrastructure, Financial Risks, and FDI between Disruptive Technology and Innovation; and (3) moderating roles of Perceived Risks and Arousal between Innovation and NPD. In conclusion, we provide practical implications for managers regarding improving new product design. Finally, we give some pointers for future research.