Developing successful breakthrough innovations is a challenge for industrial firms due to the high degree of uncertainty and complexity involved. This difficulty is heightened by the rapid development of information and communication technologies, which has disrupted many traditional industries and has forced companies to adopt more radical approaches to innovation. To investigate the role of technological capabilities in digital disruption, the present study employs an in-depth qualitative case study of Perfect Corporation. We analyze how the market environment, strategies, business models, processes, and competencies, and organizational structure influence the company’s ability to develop successful breakthrough innovations. Our findings reveal that Perfect Corporation has established and sustained a competitive advantage by observing market trends, leveraging its parent company’s breakthrough technologies, and strategically positioning itself in the fashion technology sector. Our results contribute to the fields of breakthrough innovation and digital disruption.
