The Ad-hoc of Disruptive Innovation and A Typology of Transformational Innovations: Tesla Case of Avalanche Innovation and Exemplars of Authentic Entrepreneurship

Abstract

Automobile industry is under the transformational innovations. The module and part makers of the internal combustion engine and related parts are disrupted by the electric vehicles. Tesla is the leading innovator in this sector. An investor asked Prof. Christensen whether Tesla is a disruptive innovation. The answer was strictly “No!” The contradiction of the reality and the theoretical claim brings the idea of anomalies in theory. For sure, Tesla has the ‘Disruptiveness’ in a sense, but the rigorous judgement is contradictory. It is an opportunity to expand the innovation theory. This study is an ad-hoc expansion of disruptive innovation theory with four transformational innovation types: Avalanche Innovation, foundation innovation, disruptive innovation. and authentic innovation/ entrepreneurship. Here, two innovation axis are suggested to explain the process of transformation and authenticity of entrepreneurs leading innovation. The re-examination of Tesla innovation from Christensen’s theoretical perspective and categorize it as a new type of innovation. It is ad-hoc expansion named as avalanche innovation. There are several downward innovations with adaptive course of actions that brings avalanche of Innovation to the SMEs in automobile industries. The convertive innovation of Hyundai-Kia motors and the barricade innovation of the parts and module companies are discussed. Based on the case based theory building research, more development of responsive strategy to avalanche innovation for the survival of the incumbents. Research agendas are discussed for the future research possibilities.