How Companies Harness Strategic Cannibalization in Transformational Scale-up

Abstract

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