Product innovation and start-up business market share performance

Product innovation and start-up business market share performance

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Article ID: iaor1991878
Country: United States
Volume: 36
Issue: 10
Start Page Number: 1279
End Page Number: 1289
Publication Date: Oct 1990
Journal: Management Science
Authors:
Keywords: planning, innovation
Abstract:

This empirical study estimates the impact of several product innovation attributes on initial market share. It is found that the product’s advantage relative to competing products has the strongest market share impact. Incompatibility with customers’ existing way of doing things does not have a meaningful market share impact. By reducing market share, a new and proprietary product technology tends to act as a barrier to adoption, unless the effect is offset by a major product advantage.

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