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Disruption in the automotive industry: A Cambrian moment

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  • Ferràs-Hernández, Xavier
  • Tarrats-Pons, Elisenda
  • Arimany-Serrat, Núria

Abstract

The automotive industry is experiencing a moment of innovation. With electronics gaining importance, the need to find sustainable solutions and the rampant availability of sharing platforms, the dynamics of this sector is witnessing a paradigm shift. A host of startups is colonizing every niche of what seems to be the new architecture: shared and self-driven electric vehicles. Old incumbents and emerging startups are interacting to control key technologies and the user interfaces of the future. The mechanical machine is being converted into a computer. The connected car is creating a new ecosystem for entrepreneurial opportunities. This study analyzes a set of 156 venture-backed startups: the nature of the firms, their founders’ profiles, their origins, their technological capabilities, and their investors. Our findings and conclusions are: (1) a phase of instability and vibrancy is beginning wherein multiple emerging firms compete to impose their standards, (2) the competitive battle is conducted in the digital arena, (3) disruption is led by outsiders with entrepreneurial experience and deep knowledge of digital technologies, and (4) a final winning dominant design may emerge. Entrepreneurial outsiders and outsiders coming from consumer electronics, electrical companies, and/or digital platforms have a window of opportunity to enter this new market.

Suggested Citation

  • Ferràs-Hernández, Xavier & Tarrats-Pons, Elisenda & Arimany-Serrat, Núria, 2017. "Disruption in the automotive industry: A Cambrian moment," Business Horizons, Elsevier, vol. 60(6), pages 855-863.
    • Handle: RePEc:eee:bushor:v:60:y:2017:i:6:p:855-863
    DOI: 10.1016/j.bushor.2017.07.011
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    References listed on IDEAS

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    1. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
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    1. Nylund, Petra A. & Ferràs-Hernández, Xavier & Pareras, Luis & Brem, Alexander, 2022. "The emergence of entrepreneurial ecosystems based on enabling technologies: Evidence from synthetic biology," Journal of Business Research, Elsevier, vol. 149(C), pages 728-735.
    2. Szalavetz, Andrea, 2022. "Transition to electric vehicles in Hungary: A devastating crisis or business as usual?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    3. Sun, Xiaoqian & Wandelt, Sebastian & Zhang, Anming, 2022. "STARTUPS: Founding airlines during COVID-19 - A hopeless endeavor or an ample opportunity for a better aviation system?," Transport Policy, Elsevier, vol. 118(C), pages 10-19.
    4. Manel Arribas-Ibar & Petra A. Nylund & Alexander Brem, 2021. "The Risk of Dissolution of Sustainable Innovation Ecosystems in Times of Crisis: The Electric Vehicle during the COVID-19 Pandemic," Sustainability, MDPI, vol. 13(3), pages 1-14, January.
    5. Arnauld Bessagnet & Joan Crespo & Jerome Vicente, 2023. "How is the literature on Digital Entrepreneurial Ecosystems structured? A socio-semantic network approach," Papers in Evolutionary Economic Geography (PEEG) 2320, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2023.
    6. Matthias Niggli & Christian Rutzer, 2023. "Digital technologies, technological improvement rates, and innovations “Made in Switzerland”," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 159(1), pages 1-31, December.
    7. Schauman, Sebastian & Heinonen, Kristina & Holmlund, Maria, 2021. "Crafting customer insight: What we can learn from the revival of the vinyl record," Business Horizons, Elsevier, vol. 64(2), pages 261-271.
    8. Xavier Ferrás-Hernández & Albert Armisen-Morell & Anna Sabata-Alberich & Elisenda Tarrats-Pons & Núria Arimany-Serrat, 2019. "The New Manufacturing: In Search of the Origins of the Next Generation Manufacturing Start-Ups," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-18, April.
    9. Singh, Anuraag & Triulzi, Giorgio & Magee, Christopher L., 2021. "Technological improvement rate predictions for all technologies: Use of patent data and an extended domain description," Research Policy, Elsevier, vol. 50(9).

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