2. DISCONTINUOUS INNOVATION OF FOCAL
FIRMS
The supply chain is a network which built around the
focal firms (FF), integrates activities of the upstream
and downstream, involving distributing the products or
services to end-user to meet customer demand. Focal
firms are those companies that usually (1) rule or
govern the supply chain, (2) provide the direct contact
to the customer, and (3) design the product or service
offered. So, discontinuous product innovation carried by
focal firms can spur innovation in the supply chain.