Discursive Strategies and Radical Technological Change: Multi-Level Discourse Analysis of the Early Computer (1947– 1958)

Why do firms fail in the face of radical technological change? Answering this question requires addressing how customers develop their interpretations and evaluation criteria of the new technology. This interpretive process occurs through discussions with other market participants. Firms can influence customers’ interpretations through the use of language and visual images what we call “discursive strategies”. Firms can fail to navigate technological disruptions because their discursive strategies do not communicate effectively with customers. Yet, methodological limitations have restricted the study of discursive strategies. We draw on multi-level discourse analysis and apply this method to explain why IBM outperformed Remington Rand in the early insurance market for computers. We advance theories of how firms manage technological disruptions and introduce a new method into strategy research.