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Established firms’ responses to disruptive technology are generally ineffective due to a failure to explore the new technology.1 pointTrueFalse

Question

Established firms’ responses to disruptive technology are generally ineffective due to a failure to explore the new technology.1 pointTrueFalse

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Solution

The statement is "True".

Here's why:

Step 1: Disruptive technology refers to new ways of doing things that disrupt or overturn traditional methods. It's often seen in industries like technology, where rapid innovation is common.

Step 2: Established firms often struggle to respond effectively to disruptive technology. This is because they're used to doing things a certain way and may be resistant to change. They might also be focused on improving their existing products or services, rather than exploring new possibilities.

Step 3: If these firms fail to explore the new technology, they might miss out on opportunities to innovate and stay competitive. They might also fail to see the potential threats posed by the disruptive technology until it's too late.

So, based on these points, the statement is true. Established firms' responses to disruptive technology are generally ineffective due to a failure to explore the new technology.

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