ADAPTATION TO TECHNOLOGICAL INNOVATION AND CORPORATE CORE-RIGIDITIES

This paper postulates that corporate core-rigidities affect an established firm's adaptation to technological innovation. This manuscript further clarifies that when the implementation of new activities is sacrificed at the cost of an established firm's core-rigidities, the firm may find it difficult to (incrementally or radically) incorporate new technological innovations into their operations. To analyze these issues in greater detail, this paper evaluates the Toyota Motor Company as a case study for an organization's struggle to simultaneously adapt two innovations. Interviews at the Chinese production base for Toyota served as the methodology for this case study.