Strategic Management Journal 2025
Launch support: Managing complementor bottlenecks in the disruptive innovation of small satellites
Abstract
Research Summary Through both qualitative and quantitative analyses of large‐rocket providers' support for small‐satellite manufacturers before the emergence of small rockets, we examine how disruptors to an incumbent ecosystem gain support from complementors of the incumbent technology. Our analyses illuminate the incumbent complementors' adjustment costs arising from cospecialization with specific incumbent technology designs and resource dependency on major incumbent technology customers. These adjustment costs disincentivize incumbent complementors from supporting the disruptors. In addition, we demonstrate that strategies adopted by the disruptors, such as technological standardization and forward integration, help mitigate these adjustment costs and incentivize incumbent complementors to support the disruptive innovation. Managerial Summary Small satellites represent a disruptive innovation that significantly reduces the time and cost of satellite production and launch. Despite the large number of small satellites launched today, initially, they were viewed as “second‐class launch citizens,” with incumbent large‐rocket companies resisting launching them. This paper examines how small‐satellite manufacturers overcame this resistance before their dedicated small‐satellite ecosystem was established. We identify the adjustment costs that caused resistance from large‐rocket companies and examine two specific strategies implemented by disruptors—technological standardization and forward integration—to mitigate these costs and gain support from large‐rocket companies.
- DOI
- 10.1002/smj.70021
- Sources
- openalex