Why do established firms fail to face disruptive technological change

Because an organization's structure and how its groups work together may have been established to facilitate the design of its dominant product, the direction of causality may ultimately reverse itself: the organization's structure and the way its groups learn to work together can then affect the way it can and cannot design new products.

"But when established firms wait until a new technolohy has become commercially mature in its new applications and lauch their own version of the technology only as a response to an attack on their home markets, the fear of cannibalization can become a self-fulfilling prophecy"

"The fear of cannibilizing sales of existing products is often cited as a reason why established firms delay the introduction of new technologies. However, if new technologies enable new market applications to emerge, the introduction of new technology may not inherently be cannibalistic..."