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Evolving user needs and late-mover advantage.

Adrien Querbes1, Koen Frenken2

  • 1Carnegie Mellon University, USA.

Strategic Organization
|June 10, 2017
PubMed
Summary

Late-mover firms can outperform first movers by adapting to evolving user needs. This late-mover advantage is more likely in complex technologies, offering superior product designs.

Area of Science:

  • Business Strategy
  • Innovation Management
  • Technology Adoption

Background:

  • First-mover firms often face functional trade-offs as user needs evolve.
  • Early market entry can lead to path dependencies and design rigidity.

Purpose of the Study:

  • To introduce a generalized NK-model analyzing late-mover advantage.
  • To explore the conditions under which late movers can surpass first movers.

Main Methods:

  • Development of a generalized NK-model.
  • Simulation and analysis of firm strategies under evolving user needs.

Main Results:

  • Late movers can leapfrog first movers by leveraging new information on user needs.
  • Late-mover advantage is more probable for complex technologies.
Keywords:
NK-modelfirst-mover disadvantagelate-mover advantageproduct complexity

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  • Late movers often achieve superior product designs by avoiding early trade-offs.

    • Conclusions:

    • The study highlights the strategic benefits of delayed market entry in dynamic environments.
    • Managerial insights are provided for navigating first-mover and late-mover dynamics.
    • Understanding technology complexity is crucial for assessing late-mover potential.