An Assessment of Disruptive Innovation in the Automobile Production Industry: Issues and Challenges

Abstract:

Disruptive innovation is essential for economic growth and sustainability in the automobile industry. This study assesses disruptive innovation in automobile production, identifying implementation challenges. Conducted through an exploratory design, data was collected from 99 industry professionals via LinkedIn and analysed using SPSS. Results show disruptive innovation effectively supports new market creation, cost-effectiveness, meeting customer needs, and enabling unique capabilities. However, challenges such as staff capacity limitations, financial pressure, rapid disruption pace, and regulatory uncertainty hinder its effectiveness. Correlation analysis reveals that high costs and regulatory standards significantly limit its effectiveness in new market creation and cost-effectiveness. It is concluded that disruptive innovation presents opportunities for market creation and performance improvement, but challenges need addressing. Future research should focus on solutions, and organisations should establish internal committees to address implementation challenges and achieve optimal outcomes.