SCHUMPTER’S THEORY OF INNOVATION IN THE MANUFACTURING SECTOR: DRIVING COMPETITIVE ADVANTAGE THROUGH DISRUPTIVE TECHNOLOGIES

Abstract

The role of disruptive technologies in driving innovation within the manufacturing sector, focusing on their impact on competitive advantage. By examining Schumpeter’s theory of creative destruction, the research investigates how technologies like AI, robotics, and IoT contribute to the evolution of manufacturing industries. The study aims to evaluate the ways in which these technologies disrupt traditional business models, foster innovation, and ultimately shape competitive dynamics in manufacturing. It also assesses the barriers and enablers that influence the adoption of disruptive technologies, including organizational culture, resource availability, and government policies. Additionally, the research examines how innovation resulting from disruptive technologies can serve as a key source of competitive advantage for firms, enabling them to reduce costs, differentiate products, and optimize production processes. Using a mixed-methods approach, the study combines qualitative insights with quantitative data to provide a comprehensive analysis of these complex interactions. The findings aim to contribute to both academic knowledge on innovation theory and practical guidance for manufacturing firms seeking to leverage disruptive technologies for growth and competitiveness. The study offers implications for business leaders, policymakers, and researchers interested in the intersection of innovation, technology, and industry evolution.