Abstract: There are theoretical gaps and practical necessities in the research concerning the evolution path of profit from corporate disruptive innovation. Based on the open business model theory, a longitudinal case study that we conduct from the perspective of open business model reaches the following conclusions. First, disruptive innovation diffusion is a process compatible with the openness of the business model, in which there are consistencies between disruptive innovation and its encroachment strategy, and between encroachment strategy of disruptive innovation and value creation and capture strategy. Second, in the three stages of low-end encroachment, high-end encroachment and high-end maintenance, the open mechanism of value creation is characterized respectively by inbound orientation, coupling orientation and platform orientation, the open mechanism of value capture is characterized respectively by mutual-benefit orientation, complementary orientation and symbiotic orientation. Finally, the evolution of disruptive innovation increasingly relies on more open value creation and capture mechanisms, and this trend is conductive for late-mover companies to embed themselves deeply into wider ecosystem and upgrade the existing dominant logic.

Key words: disruptive innovation, encroachment strategy, value creation, value capture, open business model