Innovation is indispensable for sustained business growth. This paper focuses on Clayton Christensen’s Theory of Disruptive Innovation to examine the mechanisms through which disruptive innovation arises (i.e., theory) and the specific management methods involved in that process (i.e., practice), based on concrete examples. Professor Christensen’s thesis divides innovation into two types: sustaining innovation and disruptive innovation. Sustaining innovation, which is the primary focus of most established firms, aims to improve upon goods or services in order to better meet the needs of the existing customer base. Meanwhile, disruptive innovation targets customers who are already fully satisfied with existing products and services and do not actively seek out new improvements, or those who, for one reason or another, are not consumers of the existing goods or services. Disruptive innovation is important for start-up companies. In Japan, disruptive innovation has been deemed critical in order to revive the country’s international competitive power. However, if we look at Japan’s post-war history, a large number of firms, including Sony and Honda, which Professor Christensen discussed in his book, have successfully brought in disruptive innovation and contributed to the country’s rapid economic development. If we consider the achievements of Japan’s past entrepreneurs, one cannot conclude that the Japanese lack a history of innovative ability. I argue that with a proper understanding of theory and a sustained practical mindset, new innovation can surely be generated.
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