Hun Lee

Timing, order and durability of new product advantages with imitation

This research examined the effects of timing, order and the durability of first mover advantages by analyzing the stock market reactions to new product introductions and imitations. The major findings are that both timing and order of moves are important and that rival reactions undermine the durability of first mover advantages. More specifically, (1) early and fast movers achieve greater gains than late and slow movers, and (2) first movers suffer at the time of new product imitations. Copyright

The Effect of New Product Radicality and Scope on the Extent and Speed of Innovation Diffusion

Drawing from institutional and bandwagon theories, we develop and examine how characteristics of an innovation—radicality and scope—affect diffusion rates—the extent and speed of diffusion. The hypotheses are empirically tested with a sample of 82 new product innovations in three separate industries over a sixteen-year time span. We find that: (1) the greater the radicality of innovation, the higher the extent and faster the speed of diffusion and (2) the greater the scope of innovation, the faster the speed of diffusion. We advance the innovation diffusion literature by using the institutional and bandwagon literature to explain how micro-characteristics of each innovation influence diffusion rates.