Incumbent response to technological change: The case of hybrid vehicle development

The fundamental question of organization when facing with rapidly changing environment is that how to develop or change its resources. Exploring new resource is challenging in the meaning that it requires new technological domain which depart from the firm's existing knowledge. Although previous studies have emphasized the importance of understanding firm's dynamic capability to change its previous resources, we have still struggled with the questions on how incumbent manages the much broader series of resources. In this paper, the case of hybrid vehicle development provides a unique setting to examine how an established company develops its resource portfolio changes in people, assets and knowledge.