Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles

Abstract

Disruptive technologies tend to underperform on attributes that are considered as key attributes of incumbent technologies and require new value propositions to increase mainstream customer appeal. Yet, how do firms reconfigure their value proposition as a way to overcome the technological inferiority of disruptive technologies? This article conceptualizes and empirically investigates the process of value proposition reconfiguration. Based on evidence on the commercialization of electric vehicles, it explores the tactics firms use to reconfigure value propositions to increase market acceptance from mainstream customers. The article develops a framework showing three reconfiguration tactics: compensating, enhancing, and coupling tactics.