Launch Support: Managing Complementor Bottlenecks in the Disruptive Innovation of Small Satellites

Small satellites represent a disruptive innovation that significantly reduces the time and cost of satellite production and launch. Despite the large number of small satellites launched today, initially, they were viewed as “second-class launch citizens,” with incumbent large-rocket companies resisting launching them. This paper examines how small-satellite manufacturers overcame this resistance before establishing their dedicated small-satellite ecosystem. We identify the adjustment costs that caused resistance from large-rocket companies and examine two specific strategies implemented by disruptors—technological standardization and forward integration—to mitigate these costs and gain support from large-rocket companies.