Construction of Open Innovation Ecology on the Internet: A Case Study of Xiaomi (China) Using Institutional Logic

What Cultivates a Path of Disruptive Innovation within Semiconductor Latecomers? An Exploratory Case Study of HiSilicon

Disruptive innovation is an effective way for market latecomers to draw a level with earlier developers. Yet, little is known about how a path of disruptive innovation for semiconductor latecomers can be cultivated. We aim to fill this gap in knowledge with the help of the experience of China’s local fabless semiconductor firm, HiSilicon, by using a single case qualitative method for vertical research. The results show that the ‘five-steps-in-one’ S-M-A-R-T framework is an effective path for semiconductor latecomers to cultivate disruptive innovation of the dynamic process. It can help existing semiconductor latecomers to break through their lagging dilemma. Among them, strategic direction (S) is a guideline, market identification (M) is a prerequisite, ability building (A) is a foundation, R&D for independent technology (R) is a key, and timing of market entry (T) is a safeguard. Our case study ‘HiSilicon’ happened to be in this situation; it took 15 years to counterattack from a niche market to the mainstream market, and finally accomplished disruptive innovation. Our findings contribute to enriching and expanding the guidance for semiconductor latecomers in different countries by identifying how to foster their disruptive innovation to catch up successfully.