Abstract
This chapter presents an analysis of product-level and firm-level factors that affect the time it takes for firms to imitate new product technologies introduced by competitors. In particular, the analysis links product diffusion and product imitation dynamics, a perspective that has been surprisingly missing to date. With the aim of shedding more light on new product technology imitation dynamics over a product diffusion life cycle, this chapter shows that the time for new technology imitation may change over time depending on the characteristics of the firm introducing the technology. The mobile phone industry is an ideal setting for such analysis, given the numerous product innovations introduced by mobile phone manufacturers over the evolution of the industry.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Abell, D. and Hammond, J. S. 1979. Strategic Market Planning. Englewood Cliffs, NJ: Prentice-Hall.
Abernathy, W. J. and Utterback, J. M. 1978. Patterns of industrial innovation. Technology Review, 80: 97–107.
Abrahamson, E. 1996. Management fashion. Academy of Management Review, 21: 254–285.
Abrahamson, R. and Rosenkopf, L. 1993. Institutional and competitive bandwagons: Using mathematical modeling as a tool to explore innovation diffusion. Academy of Management Review, 18: 487–517.
Abrahamson, R. and Rosenkopf, L. 1997. Social network effects on the extent of innovation diffusion: A computer simulation. Organization Science, 8: 289–309.
Agarwal, R., Sarkar, M. B. and Echambadi, R. 2002. The conditioning effect of time on firm survival: A life cycle approach. Academy of Management Journal, 45: 971–994.
Anderson, C. R. and Paine, F. T. 1975. Managerial perceptions and strategic behavior. Academy of Management Journal, 18: 811–823.
Anderson, C. and Zeithaml, C.1984. Stage of the product life cycle, business strategy and business performance. Academy of Management Journal, 27: 5–24.
Barry, L. B. 1994. Are product life cycles really getting shorter? Journal of Product Innovation Management, 11: 300–308.
Bass, F. M. 1969. A new product growth model for consumer durables. Management Science 15: 215–227.
Baum, J. and Korn, H. 1999. Dynamics of dyadic competitive interaction. Strategic Management Journal, 20: 251–278.
Bhattacharjee, S., Gopal, R., Lertwachara, K., Marsden, J. and Telang, R. 2007. The effect of digital sharing technologies on music markets: A survival analysis of albums on ranking charts. Management Science, 53: 1359–1374.
Bikhchandani, S., Hirshleifer, D. and Welch, I. 1992. A theory of fads, fashion, custom, and cultural change as informational cascades. Journal of Political Economy, 100: 992–1026.
Bikhchandani, S., Hirshleifer, D. and Welch, I. 1998. Learning from the behavior of others: Conformity, fads, and informational cascades. Journal of Economic Perspectives, 12: 151–170.
Blau, P. M. 1970. A formal theory of differentiation in organizations. American Sociological Review, 35(2): 201–218.
Bohlmann, J. D., Golder, P. N. and Mitra, D. 2002. Deconstructing the pioneer’s advantage: Examining vintage effects and consumer valuations of quality and variety. Management Science, 48: 1175–1195.
Bonanno, G. 1987. Location choice, product proliferation and entry deterrence. Review of Economic Studies, LIV: 37–45.
Calantone, R., Garcia, R. and Dröge, C. 2003. The effects of environmental turbulence on new product development strategy planning. Journal of Product Innovation Management, 20: 90–103.
Carroll, G. R. 1985. Concentration and specialization: Dynamics of niche width in populations of organizations. American Journal of Sociology, 90: 1262–83.
Carroll, G. R., Dobrev, S. D. and Swaminathan, A. 2002. Organizational processes of resource partitioning. Research in Organizational Behavior, 24: 1–40.
Caves, R. E. and Porter, M. E. 1977. From entry barriers to mobility barriers. Quarterly Journal of Economics, 91: 241–261.
Christensen, C. M., Roth, E. A. and Antony, S. D. 2004. Seeing What’s Next. Boston, MA: Harvard Business School Press.
Cohen, W. M. and Levinthal, D. A. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35: 128–152
D’Aveni, R. A. 1994. Hypercompetition: Managing the Dynamics of Strategic Maneuvering. New York: Free Press.
Damanpour, F. 2010. An integration of research findings of effects of firm size and market competition on product and process innovations. British Journal of Management, 21: 996–1010.
Damanpour, F. and Gopalakrishnan, S. 2001. The dynamics of the adoption of product and process innovations in organizations. Journal of Management Studies, 38: 45–65.
Dean, J. 1950. Pricing policy for new products. Harvard Business Review, 28: 45–53.
DiMaggio, P. and Powell, W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational field. American Sociological Review, 48: 147–160.
Fidler, L. A. and Johnson, J. D. 1984. Communication and innovation implementation, Academy of Management Journal, 9: 704–711.
Fiegenbaum, A. and Thomas, H. 1995. Strategic groups as reference groups: Theory, modelling and empirical examination of industry and competitive strategy. Strategic Management Journal 16: 461–76.
Fiol, C. M. and O’Connor, E. J. 2003. Waking up! Mindfulness in the face of bandwagons. Academy of Management Review, 28: 54–70.
Fligstein, N. 1985. The spread of the multidivisional form among large firms, 1919–1979. American Sociological Review, 50: 377–391.
Fourt, L. A. and Woodlock, J. W. 1960. Early prediction of market success for new grocery products. Journal of Marketing, 25: 31–38.
Funk, J. 2003. Standards, dominant designs and preferential acquisition of complementary assets through slight information advantages. Research Policy, 32: 1325–1341.
Geroski, P. A. 2000. Models of technology diffusion. Research Policy, 29: 603–625.
Gimeno, J. and Woo, G. 1996. Hypercompetition in a multimarket environment: The role of strategic similarity and multimarket contact in competitive de-escalation. Organization Science, 7: 322–341.
Golder, P. N. and Tellis, G. J. 1997. Will it ever fly? Modeling the takeoff of really new consumer durables. Marketing Science, 16: 256–270.
Gregan-Paxton, J. and Roedder John, D. 1997. Consumer learning by analogy: A model of internal knowledge transfer. Journal of Consumer Research, 24: 266–284.
Greve, H. R. 1998. Performance, aspirations, and risky organizational change. Administrative Science Quarterly, 43: 58–77.
Guler, I., Guillen, M. F. and Macpherson, J. M. 2002. Global competition, institutions, and the diffusion of organizational practices: The international spread of ISO 9000 quality certificates. Administrative Science Quarterly, 47: 207–232.
Hamel, G. 2000. Leading the Revolution. Boston, MA: Harvard Business School Press.
Hannan, M. and Freeman, J. 1977. The population ecology of organizations, American Journal of Sociology, 82(5): 929–964
Hansen, F., Christensen, S. R. and Lundsteen, S. 2007. Emotion, Advertising and Consumer Choice. Denmark: Copenhagen Business School Press.
Haunschild, P. R. 1993. Interorganizational imitation: The impact of interlocks on corporate acquisition activity. Administrative Science Quarterly, 38: 564–592.
Haunschild, P. R. and Miner, A. S. 1997. Modes of interorganizational imitation: The effect of outcome salience and uncertainty. Administrative Science Quarterly, 42: 472–500.
Haveman, H. A 1993. Follow the leader: Mimetic isomorphism and entry into new market Administrative Science Quarterly. 38: 593–627.
Head, K., Mayer, T. and Ries, J. 2002. Revisiting oligopolistic reaction: Are decisions on foreign direct investments strategic complements? Journal of Economics & Management Strategy. 11: 453–472.
Hill, C. and Jones, G. R. 1998. Strategic Management Theory: An Integrated Approach (4th edn). Boston, MA: Houghton Mifflin Company.
Hoeffler, S. 2003. Measuring preferences for really new products. Journal of Marketing Research, XL: 406–420.
Hoesmer, D. and Lemeshow, S. 1999. Applied Survival Analysis. New York: John Wiley.
Howard J. A. 1963. Marketing Management. Analysis and Planning. Illinois: Homewood.
Ireland, N. J. and Stoneman, P. 1985. Order effects, perfect foresight and intertemporal price discrimination. Recherches Economiques de Louvain, 51: 7–20.
Katz, M. and Shapiro, C. 1986. Technology adoption in the presence of network externalities. Journal of Political Economy, 94: 822–841.
Kimberly, J. R. and Evanisko, M. J. 1981. Organizational innovation: The influence of individual, organizational and contextual factors on hospital adoption of technological and administrative innovation. Academy of Management Journal, 24 (4): 689–713.
Klepper, S. 1996. Exit entry, growth, and innovation over the product life cycle. American Economic Review, 86: 562–583.
Klepper, S. 1997. Industry lifecycles. Industrial and Corporate Change, 6: 145–181.
Knickerbocker, F. T 1973. Oligopolistic Reaction and Multinational Enterprise. Boston, MA: Harvard Business School Press.
Lanzolla, G. and Suarez, F. F. 2012. Closing the technology adoption/use divide: The role of contiguous user bandwagon. Journal of Management, 38(3): 836–859.
Lee, J. and Veloso, F. M. 2008. Interfirm innovation under uncertainty: Empirical evidence for strategic knowledge partitioning. Journal of Product Innovation Management, 25: 418–435.
Lee, J., Lee, K. and Rho, S. 2002. An evolutionary perspective on strategic group emergence: A genetic algorithm-based model. Strategic Management Journal, 23: 727–746.
Levitt, T. 1965. Exploit the product life cycle. Harvard Business Review, 43: 81–94.
Lieberman, M. B. and Asaba, S. 2006. Why do firms imitate each other Academy of Management Review, 31: 366–385.
Loch, C. H. and Huberman, B. A. 1999. A punctuated equilibrium model of technology diffusion. Management Science, 45(2): 160–177.
Lustgarten, S. H. 1975. The impact of buyer concentration in manufacturing industries. The Review of Economics and Statistics, 57: 125–132.
Mahajan, V., Muller, E. and Bass, F. M. 1990. New product diffusion models in marketing: A review and directions for research. Journal of Marketing, 54: 1–26.
Mahajan, V., Muller, E. and Wind, Y. 2000. New Product Diffusion Models. New York: Kluwer Academic.
Makadok, R. 1998. Can first-mover and early-mover advantages be sustained in an industry with low barriers to entry/imitation? Strategic Management Journal, 19: 683–696.
Mansfield, E. 1961. Technical change and the rate of imitation. Econometrica, 29: 741–766.
Moore, G. A. 1991. Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers. New York: Harper.
Nelson, R. R. and Winte, S. 1982. An Evolutionary Theory of Economic Change. London: The Belknap Press of Harvard University.
Nohria, N. and Gulati, R. 1996. Is slack good or bad for innovation?, Academy of Management Journal, 39: 1245–1264.
O’Shaughnessy, J. 1989. Why People Buy. Oxford: Oxford University Pres.
Pessemier, E. A. 1978. Stochastic properties of changing preferences. American Economic Review, 68: 380–385.
Prescott, E. C. and Visscher, M. 1977. Sequential location among firms with foresight. Bell Journal of Economics, 8: 378–393.
Prins, R. and Verhoef, P. C. 2007. Marketing communication drivers of adoption timing of a new e-service among existing consumers. Journal of Marketing, 71: 169–183.
Reinganum, J. F 1981. On the diffusion of new technology: A game theoretic approach, Review of Economic Studies, 48: 395–405.
Robertson, T. S. and Gatignon, H. 1986. Competitive effects on technology diffusion, Journal of Marketing, 50: 1–12.
Rogers, E. M 2003. Diffusion of Innovation. New York: Free Press.
Semadeni, M. and Anderson, B. S. 2010. The follower’s dilemma: Innovation and imitation in the professional services industry. Academy of Management Journal, 53: 1175–1193.
Shapiro, C. and Varian, H. R. 1998. Information Rules: A Strategic Guide the Network Economy. Boston: Harvard Business School Press.
Silverberg, G., Dosi, G. and Orsenigo, L. 1988. Innovation, diversity and diffusion: A self-organisation model, Economic Journal, 98: 1032–1054.
Simon, D. and Lieberman, M. 2010. Internal and external influences on adoption decisions in multi-unit firms: The moderating effect of experience. Strategic Organization, 8: 132–154.
Sinha, R. and Noble, C. 2008. The adoption of radical manufacturing technologies and firm survival. Strategic Management Journal, 29: 943–962.
St. John, C. H., Pouder, R. W. and Cannon, A. R. 2003. Environmental uncertainty and product-process life cycles: A multi-level interpretation of change over time. Journal of Management Studies, 40: 513–541.
Stoneman, P. 2002. The Economics of Technology Diffusion. Oxford: Blackwell Publishers.
Suârez, F. and Lanzolla, G. 2007. The role of environmental dynamics in building a first mover advantage theory. Academy of Management Review, 32: 377–392.
Utterback, J. 1974. Innovation in industry and the diffusion of technology. Science, 183: 620–626.
Utterback, J. and Abernathy, W. 1975. A dynamic model of process and product innovation. Omega, 3: 639–656.
Utterback, J. and Suarez, F. F. 1993. Innovation, competition and industry structure. Research Policy, 22: 1–21.
Van De Ven, A. H. 1986. Central problem in the management of innovation. Management Science, 32(5): 590–607.
Winer, R. S. 2007. Marketing Management, 3rd ed., Upper Saddle River, NJ: Prentice Hall.
Wirtz, B. W, Mathieu, A. and Schilke, O. 2007. Strategy in high-velocity environments. Long Range Planning, 40: 295–313.
Author information
Authors and Affiliations
Copyright information
© 2013 Claudio Giachetti
About this chapter
Cite this chapter
Giachetti, C. (2013). New Technology Imitation: Who Is Copied More Quickly?. In: Competitive Dynamics in the Mobile Phone Industry. Palgrave Pivot, London. https://doi.org/10.1057/9781137374127_5
Download citation
DOI: https://doi.org/10.1057/9781137374127_5
Publisher Name: Palgrave Pivot, London
Print ISBN: 978-1-349-47672-5
Online ISBN: 978-1-137-37412-7
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)