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Technological discontinuities, outsiders and social capital: a case study from Formula 1

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  • David J. Smith

Abstract

Purpose - The purpose of this paper is to examine how and why outsiders, rather than incumbents, are able to take advantage of technological discontinuities. Design/methodology/approach - The paper employs a case study of a single innovation that transformed the technology of Formula 1 motor racing. Findings - The findings show how social capital made up of “weak ties” in the form of informal personal networks, enabled an outsider to successfully make the leap to a new technological regime. Practical implications - The findings show that where new product development involves a shift to new technologies, social capital can have an important part to play. Originality/value - It is widely accepted that radical innovations are often competence destroying, making it difficult for incumbents to make the transition to a new technology. The paper's findings show how the social capital of outsiders can place them at a particular advantage in utilizing new technologies.

Suggested Citation

  • David J. Smith, 2012. "Technological discontinuities, outsiders and social capital: a case study from Formula 1," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 15(3), pages 332-350, July.
  • Handle: RePEc:eme:ejimpp:14601061211243666
    DOI: 10.1108/14601061211243666
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