IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v19y2008i1p25-38.html
   My bibliography  Save this article

Product Demography of De Novo and De Alio Firms in the Optical Disk Drive Industry, 1983--1999

Author

Listed:
  • Olga M. Khessina

    (Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

  • Glenn R. Carroll

    (Graduate School of Business, Stanford University, Stanford, California 94305)

Abstract

Little theory and research addresses the ways organizational context affects the demography of products. We examine this question here by focusing on an organization's mode of market entry. Specifically, we explore differences between firms entering a market de novo (start-up) and those entering de alio (diversification from another market). We analyze all products ever shipped in the worldwide optical disk drive (ODD) industry, 1983--1999. We find an almost paradoxical empirical pattern, whereby de novo firms typically introduce products with widely agreed upon “better” (that is, universally more appealing) technological characteristics. Yet these products generally stay on the market for a shorter time than those of de alio firms, whose products generally display less appealing technological features.

Suggested Citation

  • Olga M. Khessina & Glenn R. Carroll, 2008. "Product Demography of De Novo and De Alio Firms in the Optical Disk Drive Industry, 1983--1999," Organization Science, INFORMS, vol. 19(1), pages 25-38, February.
    • Handle: RePEc:inm:ororsc:v:19:y:2008:i:1:p:25-38
    DOI: 10.1287/orsc.1070.0301
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1070.0301
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.1070.0301?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Christensen, Clayton M. & Rosenbloom, Richard S., 1995. "Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network," Research Policy, Elsevier, vol. 24(2), pages 233-257, March.
    2. Atul Nerkar & Peter W. Roberts, 2004. "Technological and product‐market experience and the success of new product introductions in the pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 779-799, August.
    3. William P. Barnett & Aimee-Noelle Swanson & Olav Sorenson, 2003. "Asymmetric selection among organizations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(4), pages 673-695, August.
    4. Barry L. Bayus, 1998. "An Analysis of Product Lifetimes in a Technologically Dynamic Industry," Management Science, INFORMS, vol. 44(6), pages 763-775, June.
    5. Hayagreeva Rao, 1994. "The Social Construction of Reputation: Certification Contests, Legitimation, and the Survival of Organizations in the American Automobile Industry: 1895–1912," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 29-44, December.
    6. Shane M. Greenstein & James B. Wade, 1998. "The Product Life Cycle in the Commercial Mainframe Computer Market, 1968-1982," RAND Journal of Economics, The RAND Corporation, vol. 29(4), pages 772-789, Winter.
    7. William P. Barnett & John Freeman, 2001. "Too Much of a Good Thing? Product Proliferation and Organizational Failure," Organization Science, INFORMS, vol. 12(5), pages 539-558, October.
    8. Olav Sorenson, 2000. "Letting the market work for you: an evolutionary perspective on product strategy," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 577-592, May.
    9. Andrew A. King & Christopher L. Tucci, 2002. "Incumbent Entry into New Market Niches: The Role of Experience and Managerial Choice in the Creation of Dynamic Capabilities," Management Science, INFORMS, vol. 48(2), pages 171-186, February.
    10. David G. McKendrick & Glenn R. Carroll, 2001. "On the Genesis of Organizational Forms: Evidence from the Market for Disk Arrays," Organization Science, INFORMS, vol. 12(6), pages 661-682, December.
    11. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    12. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1988. "Patterns of Firm Entry and Exit in U.S. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 495-515, Winter.
    13. Stavins, Joanna, 1995. "Model Entry and Exit in a Differentiated-Product Industry: The Personal Computer Market," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 571-584, November.
    14. Tom Cottrell & Barrie R. Nault, 2004. "Product variety and firm survival in the microcomputer software industry," Strategic Management Journal, Wiley Blackwell, vol. 25(10), pages 1005-1025, October.
    15. Steven Klepper & Kenneth L. Simons, 2000. "Dominance by birthright: entry of prior radio producers and competitive ramifications in the U.S. television receiver industry," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 997-1016, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Camerani, Roberto & Corrocher, Nicoletta & Fontana, Roberto, 2020. "It's never too late (to enter)… till it is! Firms’ entry and exit in the digital audio player industry," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    2. Wang, Pengfei, 2019. "Price space and product demography: Evidence from the workstation industry, 1980–1996," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    3. Euy-Young Jung & Chulwoo Baek & Jeong-Dong Lee, 2012. "Product survival analysis for the App Store," Marketing Letters, Springer, vol. 23(4), pages 929-941, December.
    4. Barry L. Bayus & Rajshree Agarwal, 2007. "The Role of Pre-Entry Experience, Entry Timing, and Product Technology Strategies in Explaining Firm Survival," Management Science, INFORMS, vol. 53(12), pages 1887-1902, December.
    5. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    6. Liang Chen & Mengmeng Wang & Lin Cui & Sali Li, 2021. "Experience base, strategy‐by‐doing and new product performance," Strategic Management Journal, Wiley Blackwell, vol. 42(7), pages 1379-1398, July.
    7. Ansari, Shahzad (Shaz) & Krop, Pieter, 2012. "Incumbent performance in the face of a radical innovation: Towards a framework for incumbent challenger dynamics," Research Policy, Elsevier, vol. 41(8), pages 1357-1374.
    8. Iain M. Cockburn & Megan J. MacGarvie, 2011. "Entry and Patenting in the Software Industry," Management Science, INFORMS, vol. 57(5), pages 915-933, May.
    9. Elizabeth G. Pontikes & William P. Barnett, 2015. "The Persistence of Lenient Market Categories," Organization Science, INFORMS, vol. 26(5), pages 1415-1431, October.
    10. Anavir Shermon & Mahka Moeen, 2022. "Zooming in or zooming out: Entrants' product portfolios in the nascent drone industry," Strategic Management Journal, Wiley Blackwell, vol. 43(11), pages 2217-2252, November.
    11. Yue M. Zhou & Xiang Wan, 2017. "Product variety, sourcing complexity, and the bottleneck of coordination," Strategic Management Journal, Wiley Blackwell, vol. 38(8), pages 1569-1587, August.
    12. Roberto Fontana & Lionel Nesta, 2007. "Product entry in a fast growing industry: The LAN switch market," Springer Books, in: Uwe Cantner & Franco Malerba (ed.), Innovation, Industrial Dynamics and Structural Transformation, pages 87-106, Springer.
    13. Yue Maggie Zhou & Xiang Wan, 2017. "Product variety and vertical integration," Strategic Management Journal, Wiley Blackwell, vol. 38(5), pages 1134-1150, May.
    14. Roberto Fontana & Lionel Nesta, 2009. "Product Innovation and Survival in a High-Tech Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(4), pages 287-306, June.
    15. Sean T. Hsu & Susan K. Cohen, 2022. "Overcoming the Incumbent Dilemma: The Dual Roles of Multimarket Contact During Disruption," Journal of Management Studies, Wiley Blackwell, vol. 59(2), pages 319-348, March.
    16. Dan, Sujan M., 2019. "How interface formats gain market acceptance: The role of developers and format characteristics in the development of de facto standards," Technovation, Elsevier, vol. 88(C).
    17. Alicia Barroso & Marco S. Giarratana & Samira Reis & Olav Sorenson, 2016. "Crowding, satiation, and saturation: The days of television series' lives," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 565-585, March.
    18. Gang, KwangWook, 2018. "The impact of pre-entry experiences on entry decisions and firm survival," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 249-258.
    19. Gino Cattani, 2005. "Preadaptation, Firm Heterogeneity, and Technological Performance: A Study on the Evolution of Fiber Optics, 1970–1995," Organization Science, INFORMS, vol. 16(6), pages 563-580, December.
    20. Fabrizio Perretti & Giacomo Negro & Alessandro Lomi, 2008. "E Pluribus Unum : Framing, Matching, and Form Emergence in U.S. Television Broadcasting, 1940--1960," Organization Science, INFORMS, vol. 19(4), pages 533-547, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:19:y:2008:i:1:p:25-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.