Can Process Improvement be Disruptive?

A number of articles I have read recently say that it is difficult, or impossible, to develop disruptive innovations in an existing company or organization.  See here for an example from a blog post.  Suggestions are to separate them from an ongoing business to isolate them from the pressures of meeting operational goals, such as revenue, profit, etc.  So, they reinforce the idea that innovation must occur in a new company or isolated in an existing company.

But, what about continuous improvement, such as those encouraged by the Malcolm Baldridge award?  As a Certified Manager of Quality/Organizational Excellence (CMQ/OE) I would think that process improvement would lead to the potential of developing disruptive innovations.  If anyone has seen any research or articles that address this, please let me know.

Process improvement, if properly addressing all aspects of the process and resulting products/services, would take into account innovations that are new and have potential to affect what the company is currently doing.  If cost reduction, then addressing all areas that could result in cost reduction might lead to a disrupting innovation that made them a market leader.  Sane with almost any characteristic of either the process or the result of executing that process.

What do you think?  Is it possible to develop disruptive innovations through process improvment?