Creative and adaptive responses in technological change

Drawing on Schumpeterian concept of creative and adaptive responses literature the article analyses how different firms' behaviour can influence structural and knowledge change at both firm and industry levels. We use this theoretical framework to analyse a qualitative case study analysing the transformation occurred in the telecommunication industry on the bounce of Voice over Internet Protocol (VoIP) in the consumer voice market segment. Both new entrants and incumbents have used and developed the technology but they have had different responses to the development of VoIP. The analysis of the case study shows that transformation in the industry structure takes place only once firms intentionally react creatively to change by exploiting all innovation features while adaptive responses reduce the pace of changes.