How Companies Harness Strategic Cannibalization in Transformational Scale-up

Abstract

A company's market performance depends on its capabilities to innovate and capture value through commercialization. Transformative leaps and portfolio renewals supporting differentiation and secured market positions require controlled cannibalization, or intentional reduction of sales and profit. Although research has shown that the willingness to cannibalize accelerates radical innovation, product cannibalization for transformation lacks focused research. We concentrate on strategic cannibalization in B2B, supported by the literature found in three databases. The key findings from the review are plotted on a framework composed of process, people, product, market, and customer to understand the potential impact. We propose adding an active cannibalization step in the commercialization process and highlight the importance of intentional cannibalization when innovation is disruptive and transformation is based on a new service model. Our study contributes to innovation management, highlighting controlled cannibalization as a strategic path for companies that seek a transition from market development to sales development.