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Is it a car or a truck?: managerial beliefs, the choice of product architecture, and the emergence of the minivan market segment

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  • Daniel E. Engler

Abstract

New markets segments are a common setting for studies in technology strategy. These studies generally assume that new segments already exist, or have formed following the introduction of a product innovation by an entering firm. Thus, theory on the role of established firms in the emergence of new market segments is underdeveloped. This study informs current research by explaining the product innovation decisions of established firms during the emergence of a new market segment. The results of a case study on the development and commercialization of the minivan at Chrysler, Ford, and General Motors between 1970 and 1985 indicate that existing theories based on managerial cognition, firm capabilities, economic incentives, and organizational structure are insufficient to explain the decisions. This article develops theory based on the interrelationship of these four mechanisms.

Suggested Citation

  • Daniel E. Engler, 2015. "Is it a car or a truck?: managerial beliefs, the choice of product architecture, and the emergence of the minivan market segment," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(3), pages 697-719.
    • Handle: RePEc:oup:indcch:v:24:y:2015:i:3:p:697-719.
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    File URL: http://hdl.handle.net/10.1093/icc/dtv013
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    Cited by:

    1. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Gino Cattani & Joseph F. Porac & Howard Thomas, 2017. "Categories and competition," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 64-92, January.
    2. Gino Cattani & Daniel Sands & Joe Porac & Jason Greenberg, 2018. "Competitive Sensemaking in Value Creation and Capture," Strategy Science, INFORMS, vol. 3(4), pages 632-657, December.
    3. Daniel Engler & Gino Cattani & Joe Porac, 2020. "Studying the Incubation of a New Product Market Through Realized and Alternative Histories," Strategy Science, INFORMS, vol. 5(3), pages 160-192, September.

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