Journal article

Growing pains: The effect of generational product innovation on mobile games performance

Liang Chen, Pengxiang Zhang, Sali Li, Scott F Turner

STRATEGIC MANAGEMENT JOURNAL | WILEY | Published : 2021

Abstract

Research Summary: Strategy research advises firms to capture generative value by continually introducing generational improvements on their existing products. This article considers a potential dark side of such strategy. We argue that generational innovation can elicit a negative near-term response from customers, as it distorts their ingrained behavioral patterns and imposes learning costs. Further, we propose that this negative effect of generational innovation will diminish when the product has a leading market position; and it will be more severe as the product's technological legacy lengthens. Using a difference-in-differences research design based on mobile game apps that multihome on..

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University of Melbourne Researchers

Grants

Awarded by National Natural Science Foundation of China Major Program


Funding Acknowledgements

# The authors would like to thank Editor Brian Wu and two anonymous reviewers for providing excellent guidance throughout the review process. The authors gratefully acknowledge feedback from participants at the Academy of Management conference and DRUID conference. This research was supported by the University of South Carolina Center for International Business Education and Research (CIBER) grants, and the National Natural Science Foundation of China Major Program (Project number: 72091310) Project Five (Project number: 72091314).