Abstract
Understanding how innovators create and disrupt markets remains a central challenge in strategic management and innovation, especially amid rapid advances in AI. In this two-paper dissertation, I develop and empirically ground the Creation-Disruption (CD) Theory as a novel and unified theory that explains how innovations and innovators transform markets through intertwined processes of creation and disruption, addressing limitations of prior frameworks. In the first paper, I develop the CD Theory conceptually, treating innovations as the unit of analysis, and reconceptualize, integrate, and extend prior frameworks — most notably, disruptive innovation theory and Blue Ocean Strategy — into a unified theory that explains how market creation and disruption occur. I formalize the CD Theory based on new conceptual foundations, 10 core propositions, and a structured process model that specifies the mechanisms and adoption pathways by which innovations transform markets, offering stronger explanatory, predictive, and prescriptive guidance. In the second paper, I use a multi-case theory-building approach to advance the CD Theory by analyzing 10 AI-native startups creating and disrupting markets, shifting the unit of analysis to innovators. Through longitudinal evidence, I inductively develop both general and AI-specific propositions for market creation and disruption and a five-stage process model — the Innovator’s Journey — that maps how innovators enact creation-disruption strategies from conception to market impact. These papers advance a unified, empirically grounded theory that increases explanatory power and provides actionable insights for entrepreneurs, established firms, investors, and policymakers seeking to navigate and lead innovation-driven market transformation in the era of AI and beyond.
Library of Congress Subject Headings
Creative destruction; Disruptive technologies—Economic aspects; Artificial intelligence—Economic aspects; Technological innovations—Management
Date of Award
2025
School Affiliation
Graziadio Business School
Department/Program
Business
Degree Type
Dissertation
Degree Name
Doctorate
Faculty Advisor
Nelson Granados
Recommended Citation
Alanen, Jukka, "Creation-Disruption Theory: how innovators create and disrupt markets in the era of AI and beyond" (2025). Theses and Dissertations. 1641.
https://digitalcommons.pepperdine.edu/etd/1641