Nudging digital entrepreneurs: the influence of the Google Play Store top developer award on technological innovation

Abstract

PurposeThis study explores how app store awards shape the behavior of leading digital entrepreneurs, focusing on their engagement in technological innovation through feedback and re-signaling mechanisms. It aims to reveal the nudging effect of award signals on entrepreneurial behavior.Design/methodology/approachIn this study, data from 349 leading mobile app entrepreneurs in the UK Google Play Store were collected over an extended period from various sources. Functionality novelty and explorative behavior were assessed by analyzing app release date and permission technologies in comparison to both their own prior apps and those of their closest competitors. Hypothesized relationships were tested using accelerated failure time parametric models.FindingsThis study extends the literature on signaling by showing that (1) the top developer award signal served to nudge entrepreneurs to improve the functionality novelty of their apps and those who succeeded were less likely to switch to another product category, (2) the award signal created a window of opportunity for non-award entrepreneurs to respond and those who released new apps around the midpoint of a normal app development cycle significantly improved the likelihood of winning the award in a subsequent round of award-giving, and (3) the effect of functionality novelty on winning the award was more pronounced when non-award entrepreneurs pursued more explorative than exploitative behavior in app development.Originality/valueThe results offer novel insights into an understudied area, specifically the influence of online award signals on nudging entrepreneurs to pursue technological innovation. The research also highlights the crucial role played by the app store as an intermediary signaler.