Resource Dependence Theory
#big-ideas
Clayton Christensen's study of the disk drive industry reveals a counterintuitive truth about innovation: it's the customers and investors, not the company, truly steers the ship.
Firms eagerly pursued risky technological projects when customers demanded them, but stumbled with simpler disruptive innovations that didn't align with current customer needs. This phenomenon supports the =="resource dependence" theory, which posits that a company's actions are constrained by those who provide its resources.== Like organisms in nature, businesses must adapt to these external pressures or risk extinction, highlighting the delicate balance between innovation and customer satisfaction in the corporate ecosystem.