Ecosystems in Transition: Managing Complementor Bottlenecks with Disruptive Innovation

The diffusion of a disruptive innovation depends not only on the performance of the focal new technology, but also on the availability of the complementary products and services in the ecosystem (e.g. charging infrastructure for electric cars). Lack of support from incumbent complementors often becomes an important bottleneck in the introductory stage of a disruptive innovation. In this study, we examine how disruptors improve the diffusion of disruptive innovation by managing the complementor bottleneck. Using data from the small satellite ecosystem, we show disruptors such as small satellite manufacturers use technological standardization (the CubeSat design) and customer integration (vertical integration with satellite operators) to reduce resistance from incumbent complementors (launch vehicle providers) thereby increasing the number of small satellites getting launched.