Innovators and Imitators in Novelty‐intensive Markets: A Research Agenda

Abstract

The phenomenon of demand for novelty is defined and explored as a unique and underexamined aspect of certain markets. Demand for novelty is the portion of demand not explained by practical utility or marketing effects -it is the demand for the new and unique. We explore markets characterized by high demand for novelty and how they differ from typical markets. Primarily, this involves the central role of novelty in the product or service value proposition as well as rapid growth rates and product or service obsolescence. Within this context, we consider the dynamics of innovating and imitating and suggest several ways that first mover competition is unique in markets with high demand for novelty. From the perspective of the knowledge-based theory of the firm, we consider the implications of organizational learning and knowledge and decision making as they relate to new product development routines, improvisation, and top management team decision making. We conclude by considering several avenues for future empirical research.

Organizational Improvisation: A Consolidating Review and Framework

“…Such a balance of template guidance and improvisation may also manifest itself as an established new product development process carried out in tandem with encouraged inclusion of improvisation (Samra et al 2008;Song et al 2011). Building upon a foundation of 'how things are done' can result in improving the coherence and speed of actions within organizations, particularly in dynamic environments (Dewett and Williams 2007).…”

“…In organizations, bounded improvisation entails incremental innovation. Building upon a foundation of 'how things are done' can result in improving the coherence and speed of actions within organizations, particularly in dynamic environments (Dewett and Williams 2007). Such a balance of template guidance and improvisation may also manifest itself as an established new product development process carried out in tandem with encouraged inclusion of improvisation (Samra et al 2008;Song et al 2011).…”

Hooked up to the international artistic community: external linkages, absorptive capacity and exporting by small creative firms

“…Furthermore, the creative industries differ from traditional manufacturing in the foundations of competitive advantage, relying mainly on unique products and processes rather than low input cost (Porter et al 2007). Producers in the creative industries operate in markets with a high demand for novelty, as products are purchased not only because of their practical utility, but also due to the attractiveness or novelty of the product (Dewett and Williams 2007). Constant innovation is thus an imperative in the creative industries.…”

Imitation Strategies for Sme’s Learning Process Towards Innovation Strategies

“…Themes of the relationship of contextual factors on strategy imitation: Dewett and Williams (2007), Delios, et al (2008), Semadeni and Anderson (2010), Masanell, et al (2010), Lee, et al (2010), Hodgson and Knudsen (2006) .The theme of the relationship between strategy imitation and manufacturing performance aspects that accompany it: De-Almeida and Zemsky (2008); Zhou (2006); Ceccagnoli (2005); Thompson (2009); Ofek and Turut (2008); Ethiraj and Zhu (2007); Geisendorf (2005), LeBaron and Yamamoto (2008) . The theme of the transition from the strategy of imitation to innovation strategy: Dobson.and Safarian, 2008); Xie and White (2006); Kim, et.al.…”