Auto makers and radical innovation: culture, capital and talent form road blocks

Abstract

Purpose This paper aims to investigate car manufacturers’ constraints to innovate radically. Design/methodology/approach Automotive case study. Findings First, cultural constraints hold them back, for example, reflected in legacy power structures and failure aversion. Second, car manufacturers face cash constraints as they have to exploit their core business while exploring potential future profit pools. Third, talent gaps in digital and some non-digital areas are a challenge for incumbents while competing with digital-native firms such as Tesla. Originality/value This paper elevates a fragmented literature strand on constraints to innovate.