ABSTRACT

With the rapid development of China and India as new economic powers in global competition, an obvious question is whether these emerging economies are great opportunities or threats. Whilst answers are bound to differ depending on one’s perspective, it is increasingly clear that more local firms, especially local entrepreneurs, from these emerging economies will play a more critical role in global competition by becoming challengers to global incumbents. Indeed, the fact that the majority of their populations are at the bottom of the pyramid, and thus cannot afford products designed for the developed markets, has made these emerging economies fertile ground for developing and applying disruptive innovations.

A novel mix of key attributes distinctive from those of established technologies or business models, disruptive innovations are typically inferior, yet affordable and "good-enough" products or services, which originate in lower-end market segments, but later move up to compete with those provided by incumbent firms. This book sheds new light on disruptive innovations both from and for the bottom of the pyramid in China and India, from the point of view of local entrepreneurs and international firms seeking to operate their businesses there. It covers both the theoretical and practical implications of disruptive innovation using conceptual frameworks alongside detailed case studies, whilst also providing a comparison of conditions and strategic options in India and China. Further, unlike existing studies, this book focuses on the neglected perspective of local challengers as the primary players, and in doing so reveals the extent to which the future landscape of global competition may be shaped by disruptive innovation, as well as its capacity to make the world "flatter" and more sustainable.

This unique book will be valuable to both scholars and practitioners interested in disruptive innovation and those working in the fields of Asian studies, international business, economics and globalization.

chapter 1|30 pages

Introduction: disruptive innovation from the bottom of the pyramid

The strategic implications for local challengers and global incumbents

part I|51 pages

The contexts for DI from China and India

chapter 2|17 pages

Economic competitiveness and disruptive innovation

Exploring the macro and micro contexts in China and India

chapter 3|18 pages

The role of government in an emerging disruptive innovation

The case of E-bikes in China

part II|81 pages

The strategies of DI for local challengers

chapter 5|24 pages

Mapping innovations in the disruptive innovation realm in India

What and where in the national pyramid of India

chapter 6|27 pages

Transformative capacity and absorptive capacity

The rise of Chinese wind turbine manufacturers

chapter 7|28 pages

Disruptive innovation in China's “shanzhai” cell phone industry

Theory-building via case studies

part III|59 pages

The strategies of DI for global incumbents

chapter 8|12 pages

Disruptive innovation at the bottom of the pyramid (BOP)

What role can Western incumbents play?

chapter 9|20 pages

The new wave of disruptive innovation from China

Why and how global incumbents need to respond

chapter 10|19 pages

Ambidextrous capability

The case of Japanese enterprises

chapter 11|6 pages

Conclusion

Future research agenda