Mobile network operator willingness to cannibalise as a dynamic capability

Abstract

The purpose of this study is to explore a willingness to cannibalise as a dynamic capability within incumbent mobile network operator (MNO) firms to enable radical innovations. Radical innovation is imperative for firm performance, growth, and survival in a rapidly changing and uncertain business environment. MNOs are increasingly facing an environment of business defined by discontinuous changes in their competitiveness, such as regulatory pressures, increased competition and alternative technologies customers can use to access services. Therefore, a willingness to cannibalise will be a critical dynamic capability for MNOs facing such a challenging environment. The study proposed a conceptual framework for the strategic management of the innovation process within MNOs. The framework suggested that MNOs must be willing to sense (explore) and seize (exploit) opportunities whilst shifting resources towards opportunities that may lead to cannibalising their current investments to enable more radical innovations. The central proposition of this study was that having a willingness to cannibalise as a dynamic capability will enable incumbent MNOs to adequately respond to discontinuous change environments by enabling radical innovations through their firm-level innovation processes. The study used a qualitative research approach to investigate the validity of the proposed conceptual framework and research propositions. The study used semi-structured interviews with decision-makers within incumbent MNO firms in South Africa. The collected data were analysed to test the validity of the framework and determine the views of decision-makers on willingness to cannibalise as a dynamic capability that results in radical innovation. The study found that a willingness to cannibalise is an essential dynamic capability for MNOs faced with a VUCA environment and requires the strategic management of innovation to enable radical innovations. The study found that MNOs must develop robust internal markets with higher levels of autonomy for their business units if they are to seize on potentially cannibalistic opportunities. The study also found that the role of senior leaders in shaping the organisational structures and systems and creating an innovation-enabling culture is crucial for developing a willingness to cannibalise as a dynamic capability. The implications of these results are that traditional MNOs will need to fundamentally change their organisational structures and systems and adopt an innovation-enabling culture if they are to develop a willingness to cannibalise. Senior leaders within MNOs must set the direction by changing their attitudes towards innovations that cannibalise short-term investments. Innovation management practices will be essential in the ability of MNOs to effectively introduce innovations that could cannibalise