IDEAS home Printed from https://ideas.repec.org/a/taf/indinn/v22y2015i1p18-36.html
   My bibliography  Save this article

Post-Entry Product Introduction: Who Explores New Niches?

Author

Listed:
  • Nicoletta Corrocher
  • Marco Guerzoni

Abstract

Where do innovative products come from? Why do some firms address new market niches and others do not? The literature has rarely blended the concept of innovativeness of a product at the market level with the coherence of the product portfolio at the firm level. In this paper, we examine whether the introduction of products that are highly innovative occurs in firms that are very differentiated, both in terms of target niches and in terms of technological competencies, or rather in firms that focus on specific market segments and that have a limited technological capability. The results show that the introduction of products that are new to the market generally occurs in firms that introduce many products in few market segments and are characterized by a set of specialized technological and market competencies. At least in this industry, the myth of the small specialized niche player does not hold. Implications have a positive relevance to assess firms' behaviour in a given market. From the welfare point of view, this paper helps disentangle monopolistic power generated by truly new products and simple versioning of the product.

Suggested Citation

  • Nicoletta Corrocher & Marco Guerzoni, 2015. "Post-Entry Product Introduction: Who Explores New Niches?," Industry and Innovation, Taylor & Francis Journals, vol. 22(1), pages 18-36, January.
    • Handle: RePEc:taf:indinn:v:22:y:2015:i:1:p:18-36
    DOI: 10.1080/13662716.2015.1012907
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13662716.2015.1012907
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13662716.2015.1012907?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marco Guerzoni, 2010. "The impact of market size and users' sophistication on innovation: the patterns of demand," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 113-126.
    2. Giarratana, Marco S., 2004. "Product strategies and startups' survival in turbulent industries: evidence from the security software industry," DEE - Working Papers. Business Economics. WB wb044816, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    3. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    4. Frenken, Koen & Saviotti, Paolo P. & Trommetter, Michel, 1999. "Variety and niche creation in aircraft, helicopters, motorcycles and microcomputers," Research Policy, Elsevier, vol. 28(5), pages 469-488, June.
    5. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    6. Nicoletta Corrocher & Marco Guerzoni, 2009. "Product variety and price strategy in the ski manufacturing industry," Journal of Evolutionary Economics, Springer, vol. 19(4), pages 471-486, August.
    7. Steven Klepper & Peter Thompson, 2006. "Submarkets and the evolution of market structure," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 861-886, December.
    8. Steven Klepper, 2002. "Firm Survival and the Evolution of Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 33(1), pages 37-61, Spring.
    9. Vassilakis, Spyros, 1993. "Multiproduct firms in the representative consumer model of product differentiation," Journal of Mathematical Economics, Elsevier, vol. 22(2), pages 149-160.
    10. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    11. John M. de Figueiredo & Brian S. Silverman, 2007. "Churn, Baby, Churn: Strategic Dynamics Among Dominant and Fringe Firms in a Segmented Industry," Management Science, INFORMS, vol. 53(4), pages 632-650, April.
    12. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    13. Faïz Gallouj, 1997. "Towards a neo-Schumpeterian theory of innovation in services?," Science and Public Policy, Oxford University Press, vol. 24(6), pages 405-420, December.
    14. Gallouj, Faiz & Weinstein, Olivier, 1997. "Innovation in services," Research Policy, Elsevier, vol. 26(4-5), pages 537-556, December.
    15. Eric Giraud-Héraud & Hakim Hammoudi & Mahdi Mokrane, 2003. "Multiproduct firm behaviour in a differentiated market," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 41-61, February.
    16. Kelvin Lancaster, 1990. "The Economics of Product Variety: A Survey," Marketing Science, INFORMS, vol. 9(3), pages 189-206.
    17. Takatoshi Tabuchi, 2012. "Multiproduct Firms in Hotelling’s Spatial Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(2), pages 445-467, June.
    18. Eric Giraud‐Héraud & Hakim Hammoudi & Mahdi Mokrane, 2003. "Multiproduct firm behaviour in a differentiated market," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(1), pages 41-61, March.
    19. Shane M. Greenstein & James B. Wade, 1998. "The Product Life Cycle in the Commercial Mainframe Computer Market, 1968-1982," RAND Journal of Economics, The RAND Corporation, vol. 29(4), pages 772-789, Winter.
    20. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation, Market Structure, and Firm Size," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 2, pages 16-23, Edward Elgar Publishing.
    21. Roberto Fontana & Alessandro Nuvolari & Pier Saviotti, 2009. "Introduction to the Journal of Evolutionary Economics special issue: the product characteristics approach to innovation studies," Journal of Evolutionary Economics, Springer, vol. 19(4), pages 463-469, August.
    22. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-1150, September.
    23. Steven Klepper & Peter Thompson, 2006. "Submarkets and the evolution of market structure," RAND Journal of Economics, The RAND Corporation, vol. 37(4), pages 861-886, December.
    24. Saviotti, P. P. & Metcalfe, J. S., 1984. "A theoretical approach to the construction of technological output indicators," Research Policy, Elsevier, vol. 13(3), pages 141-151, June.
    25. Stavins, Joanna, 1995. "Model Entry and Exit in a Differentiated-Product Industry: The Personal Computer Market," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 571-584, November.
    26. Olga M. Khessina & Glenn R. Carroll, 2008. "Product Demography of De Novo and De Alio Firms in the Optical Disk Drive Industry, 1983--1999," Organization Science, INFORMS, vol. 19(1), pages 25-38, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Guerzoni, 2015. "Competition, Diversity and Economic Performance: Processes, Complexities and Ecological Similarities," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 899-900, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Camerani, Roberto & Corrocher, Nicoletta & Fontana, Roberto, 2020. "It's never too late (to enter)… till it is! Firms’ entry and exit in the digital audio player industry," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    2. Frenken, Koen & Pyka, Andreas & Verspagen, Bart & Windrum, Paul, 2010. "Innovation, qualitative change and economic development--Special issue in honour of Pier-Paolo Saviotti," Structural Change and Economic Dynamics, Elsevier, vol. 21(1), pages 1-4, March.
    3. Faïz Gallouj & Marja Toivonen, 2011. "Elaborating the characteristics-based approach to service innovation: making the service process visible," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 33-58.
    4. Marco Valente, 2009. "Markets fo Heterogeneous Products: a Boundedly Rational Consumer Model," LEM Papers Series 2009/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Alicia Barroso & Marco S. Giarratana & Samira Reis & Olav Sorenson, 2016. "Crowding, satiation, and saturation: The days of television series' lives," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 565-585, March.
    6. Marco Valente, 2012. "Evolutionary demand: a model for boundedly rational consumers," Journal of Evolutionary Economics, Springer, vol. 22(5), pages 1029-1080, November.
    7. Grazia Cecere, 2012. "Economics of soft innovation: a review article," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 827-835, November.
    8. Marja Toivonen, 2010. "Different Types of Innovation Processes in Services and their Organisational Implications," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 10, Edward Elgar Publishing.
    9. Paul Windrum & Doris Schartinger & Luis Rubalcaba & Faiz F. Gallouj & Marja Toivonen, 2016. "The co-creation of multi-agent social innovations," Post-Print halshs-01322603, HAL.
    10. Sørensen, Flemming & Jensen, Jens Friis, 2015. "Value creation and knowledge development in tourism experience encounters," Tourism Management, Elsevier, vol. 46(C), pages 336-346.
    11. Lalit Manral, 2015. "The demand-side dynamics of entrant heterogeneity," Journal of Evolutionary Economics, Springer, vol. 25(2), pages 401-445, April.
    12. Faïz Gallouj & Maria Savona, 2009. "Innovation in services: a review of the debate and a research agenda," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 149-172, April.
    13. Criscuolo, Paola & Nicolaou, Nicos & Salter, Ammon, 2012. "The elixir (or burden) of youth? Exploring differences in innovation between start-ups and established firms," Research Policy, Elsevier, vol. 41(2), pages 319-333.
    14. Nicoletta Corrocher & Marco Guerzoni, 2009. "Product variety and price strategy in the ski manufacturing industry," Journal of Evolutionary Economics, Springer, vol. 19(4), pages 471-486, August.
    15. Faiz Gallouj & Luis Rubalcaba & Marja Toivonen & Paul Windrum, 2018. "Understanding social innovation in services industries," Industry and Innovation, Taylor & Francis Journals, vol. 25(6), pages 551-569, July.
    16. Giulio Maggiore & Alfonso Morvillo, 2015. "L?innovazione nei servizi pubblici: un caso nel settore sanitario," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(1), pages 127-153.
    17. Faïz Gallouj & Maria Savona, 2010. "Towards a Theory of Innovation in Services: A State of the Art," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 1, Edward Elgar Publishing.
    18. David B. Audretsch & Alexander S. Kritikos & Alexander Schiersch, 2020. "Microfirms and innovation in the service sector," Small Business Economics, Springer, vol. 55(4), pages 997-1018, December.
    19. Djellal, Faridah & Gallouj, Faïz & Miles, Ian, 2013. "Two decades of research on innovation in services: Which place for public services?," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 98-117.
    20. Audretsch, David & Hafenstein, Marian & Kritikos, Alexander S. & Schiersch, Alexander, 2018. "Firm Size and Innovation in the Service Sector," IZA Discussion Papers 12035, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:indinn:v:22:y:2015:i:1:p:18-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIAI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.