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Barriers to technology adoption and strategies to overcome them: learnings from the Japanese music industry
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Fast technological change and radical innovations can threaten the survival of incumbent firms.
Much focus of strategy research has been on examining how incumbents can successfully
transition to new technologies. However, we know little about how incumbent firms can defend
their existing positions by promoting widespread innovation resistance. Assessing the Japanese
music industry, where most of the music revenue is still generated by sales of Compact Disks
(CDs), this study identifies drivers of innovation resistance that incumbent firms could exploit
in defence. Conversely, we also discuss how challengers can overcome innovation resistance.
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Incumbents Innovation resistance Defensive strategy Music industry