Explaining Radical Technology-Based Innovations in Organizations

We propose a causal model to explain radical IS innovation. Based on the presence of a combination of predictors the model explains three types of radical IS innovation: (1) radical base innovations, i.e. breakthroughs in computing architectures; (2) radical process innovation; and (3) radical service innovation. We conduct a cross-sector field study to validate the model and identify which factors predict each of the three types of innovation. We also examine which factors increase the likelihood of a firm becoming a disruptive innovator, which engages simultaneously in all three types of innovation. Consistent with Swanson (1994) and Grover et al (1997) we confirm that each radical IS innovation type is caused by a different combination of factors. Overall, radical IS innovation is determined primarily by an organization’s knowledge depth, knowledge diversity, and ability to sense technological changes in its environment. Our findings support the claim that IS innovation research needs to differentiate its explanations by IS innovation type.