MGM102H5 Chapter Notes - Chapter 11: Organizational Ecology, Punctuated Equilibrium, Paradigm Shift
Document Summary
A paradigm shift occurs when a new technology or business model comes along that dramatically alters the nature of demand and competition. Paradigm shifts appear to be more likely in an industry when one or more of the following conditions are in place: Christensen uses the term disruptive technology to refer to a new technology that gets its start away from the mainstream of a market and then, as its functionality improves, invades the main market. These inertia forces include cognitive schemata, internal political constraints, organizational culture, strategic commitments and capabilities, and external institutional constraints. cognitive schemata- which are mental models of the world their enterprise inhabits. These mental models include beliefs about what works and does not work in their business and about what is important and unimportant. These models are based on experience management teams with a shared cognitive schema tend to ignore events, data, and suggestions that fall outside their schema.
