What Holds Back Firms from Adopting Breakthrough Tech
A study finds that incumbent firms facing shareholder pressure for short-term profits are less likely to adopt new technologies.
July 09, 2025
Anand Nandkumar
Associate Professor of Strategy. He is also the Executive Director of the Srini Raju Centre for IT and the Networked Economy (SRITNE) and Associate Dean of the Centre for Learning and Teaching Excellence (CLTE). He studies the intersection of industrial organisation, technological change, and business strategy, focusing on industries such as pharma, biotech, and software.
Video Summary
In this episode of The Big Picture, ISB Professor Anand Nandkumar discusses his research on how shareholder preferences influence the response of incumbent firms to radical technological changes. The study finds that companies with shareholders focused on short-term profits are less likely to adopt information and communication technologies (ICT), while those backed by growth-oriented shareholders are more inclined to invest in ICT. The extent of this influence is further moderated by corporate governance factors such as executive compensation and the type of shareholders.
Authored by ISB Editorial