This story is exceptionally well told in the book Breakthroughs! by P. Ranganath Nayak and John M. Ketteringham (one of the best casebooks written on innovators who defied the odds), which describes Smith’s culture of mutual commitment as the true breakthrough.

Disruptive technologies, Christensen had observed, often grew out of hobbyist communities. They were developed using “bootlegged resources” in which “off-the-shelf components” were redeployed for something other than their intended purpose. They started out wonky but rapidly improved along attributes of performance that established players ignored.

But even once you had absorbed this lesson, it wasn’t easy to implement. Pursuing niche markets cost profits, making investors question your sanity. This, too, Christensen had foretold: “One of the reasons managers at established firms find it difficult to serve emerging markets is that their investors and customers tell them not to.”

That was the real secret of The Innovator’s Dilemma, which readers often missed. It was not a book about how to succeed; it was a book about how not to fail. Christensen’s book wasn’t a how-to for start-ups but a counterinsurgency manual for senior managers at stagnating firms. Thirteen years in, Huang felt that Nvidia was at risk of becoming such a firm, and it was as much paranoia as optimism that led him to pursue the mad-science market.

Appendix:

Grove’s 1983 book High Output Management deserves the cult status it achieved in Silicon Valley.

Mayer, C., Capitalism and Crises

Among many works detailing the state of management science, I’d recommend Management Studies in Crisis: Fraud, Deception and Meaningless Research by Dennis Tourish (Cambridge University Press, 2019) and Nothing Succeeds like Failure: The Sad History of American Business Schools by Steven Conn (Cornell University Press, 2019). It is a bit of an indictment of things that H. Thomas Johnson and Robert S. Kaplan’s Relevance Lost: The Rise and Fall of Management Accounting (Harvard Business School Press, 1987) is still itself every bit as relevant today as when it was published.

Flying Blind: The 737 MAX Tragedy and the Fall of Boeing by Peter Robinson (Penguin Business, 2021) is also an enthralling history of a massive accountability sink. I learned a huge amount from Gill Kernick’s Catastrophe and Systematic Change: Learning from Grenfell (London Publishing Partnership, 2021) about another case study in which interlocking systems combined to create a tragedy that couldn’t systematically be pinned on any single organisation, let alone an individual.