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Innovation and Strategic Renewal in Mature Markets: A Study of the Tennis Racket Industry

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  • Hann Earl Kim

    (KDI School of Public Policy and Management, Dongdaemun-Gu, Seoul 130-868, Korea)

  • Johannes M. Pennings

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104, and Faculty of Business and Economics, Tilburg University, Tilburg, Netherlands)

Abstract

This paper presents a study of successive new product introductions in the mature tennis racket industry. The inquiry examines novel design's important role in strategic renewal, under the assumption that innovation includes not only the development, production, and launch of new products, but also communication between firms and market. We explore this industry's transformation through the strategic actions of innovative firms and subsequent competitive contagion. A tennis racket innovation triggers competitors' imitative reactions and sways the market toward a new de facto standard when the new product launch includes marketing such as product endorsement by high-profile professional players and advertising. Our results indicate that innovators should actively manage various industry participants as an integral part of their strategic renewal efforts, especially when facing rivalry with “me-too” peers. We suggest the interface between firms and consumers as a next focus for research on strategic renewal.

Suggested Citation

  • Hann Earl Kim & Johannes M. Pennings, 2009. "Innovation and Strategic Renewal in Mature Markets: A Study of the Tennis Racket Industry," Organization Science, INFORMS, vol. 20(2), pages 368-383, April.
    • Handle: RePEc:inm:ororsc:v:20:y:2009:i:2:p:368-383
    DOI: 10.1287/orsc.1080.0420
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    2. Martin-Rios, Carlos & Parga-Dans, Eva, 2016. "Service response to economic decline: Innovation actions for achieving strategic renewal," Journal of Business Research, Elsevier, vol. 69(8), pages 2890-2900.
    3. Ulrich Lichtenthaler, 2020. "Building Blocks of Successful Digital Transformation: Complementing Technology and Market Issues," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-14, February.
    4. Romeo V. Turcan, 2013. "International New Venture Legitimation: An Exploratory Study," Administrative Sciences, MDPI, vol. 3(4), pages 1-29, November.
    5. Amankwah-Amoah, Joseph & Khan, Zaheer & Osabutey, Ellis L.C., 2021. "COVID-19 and business renewal: Lessons and insights from the global airline industry," International Business Review, Elsevier, vol. 30(3).
    6. Ehiabhi Andrew Tafamel & Omoyebagbe Rosaline Dania, 2018. "Negotiation as a Tool for the Survival of Business Organization," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 18(1), pages 261-274.
    7. Carlo Salvato, 2009. "Capabilities Unveiled: The Role of Ordinary Activities in the Evolution of Product Development Processes," Organization Science, INFORMS, vol. 20(2), pages 384-409, April.
    8. Adrian Klammer & Stefan Gueldenberg & Sascha Kraus & Michele O’Dwyer, 0. "To change or not to change–antecedents and outcomes of strategic renewal in SMEs," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-18.
    9. Rammer, Christian & Köhler, Christian & Murmann, Martin & Pesau, Agnes & Schwiebacher, Franz & Kinkel, Steffen & Kirner, Eva & Schubert, Torben & Som, Oliver, 2010. "Innovationen ohne Forschung und Entwicklung: Eine Untersuchung zu Unternehmen, die ohne eigene FuE-Tätigkeit neue Produkte und Prozesse einführen," Studien zum deutschen Innovationssystem 15-2011, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    10. Rajshree Agarwal & Constance E. Helfat, 2009. "Strategic Renewal of Organizations," Organization Science, INFORMS, vol. 20(2), pages 281-293, April.
    11. Mary Tripsas, 2009. "Technology, Identity, and Inertia Through the Lens of “The Digital Photography Company”," Organization Science, INFORMS, vol. 20(2), pages 441-460, April.
    12. Minyoung Kim & Curba Morris Lampert & Raja Roy, 2020. "Regionalization of R&D activities: (Dis)economies of interdependence and inventive performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1054-1075, September.
    13. Yang, Hee Dong & Karon, Christoph & Kang, Sora, 2012. "To Convert or not to Convert to the Upgraded Version of de-facto Standard Software," CEI Working Paper Series 2012-02, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    14. Zeng Gang & Zhang Yi & Cao Xianzhong, 2023. "Cross-Border knowledge pipelines and innovation performance of chinese firms: evidence from Zhangjiang in Shanghai," ZFW – Advances in Economic Geography, De Gruyter, vol. 67(1), pages 33-46, May.
    15. Lampert, Curba Morris & Kim, Minyoung, 2019. "Going far to go further: Offshoring, exploration, and R&D performance," Journal of Business Research, Elsevier, vol. 103(C), pages 376-386.
    16. Adrian Klammer & Stefan Gueldenberg & Sascha Kraus & Michele O’Dwyer, 2017. "To change or not to change–antecedents and outcomes of strategic renewal in SMEs," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 739-756, September.
    17. Kwee, Z. & van den Bosch, F.A.J. & Volberda, H.W., 2010. "The Influence of Top Management Team’s Corporate Governance Orientation on Strategic Renewal Trajectories," ERIM Report Series Research in Management ERS-2010-032-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. James Hayton & Paul Olk, 2013. "Developing alliance formation process capabilities: replication, adaptation and flexibility in creating research and development consortia," Research Papers 0013, Enterprise Research Centre.
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    20. J. P. Eggers, 2016. "Reversing course: Competing technologies, mistakes, and renewal in flat panel displays," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1578-1596, August.

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