Question

In the context of organizational change, which of the following statements is true of disruptive innovations?

a.Companies that initiate disruptive innovations typically win big.
b.They do not affect existing products and markets.
c.They can be initiated solely by large entrepreneurial firms.
d.Companies affected by disruptive technologies report great profits.

Answer 1

Answer: Companies that initiate disruptive innovations typically win big.

Explanation:

Disruptive innovations are new technologies or groundbreaking ideas, introduced to an establishment that alters the original ways of doing things in that establishment and the industry it belongs to.

In most cases, disruptive innovation(s) when introduced can tend to revolutionize the way of doing things in an industry, and companies who don't quickly adjust to the new innovation(s) could risk being left behind with the speed of changes in the industry they belong to.

An example of disruptive innovation is the use of the internet to transact sales of product as against the previous method of making purchases in person.