The Influence of Prior Industry Affiliation on Framing in Nascent Industries: The Evolution of Digital Cameras
Mary J. Benner
University of Minnesota - Twin Cities - Carlson School of Management
Boston College; Harvard University - Entrepreneurial Management Unit
December 6, 2010
Strategic Management Journal, Forthcoming
Harvard Business School Entrepreneurial Management Working Paper No. 11-007
New industries sparked by technological change are characterized by high uncertainty. In this paper we explore how a firm's conceptualization of products in this context, as reflected by product feature choices, is influenced by prior industry affiliation. We study digital cameras introduced from 1991-2006 by firms from three prior industries. We hypothesize and find first, that prior industry experience shapes a set of shared beliefs resulting in similar and concurrent firm behavior, second, that firms notice and imitate the behaviors of firms from the same prior industry, and third, that as firms gain experience with particular features, the influence of prior industry decreases. This study extends previous research on firm entry into new domains by examining heterogeneity in firms' framing and feature-level entry choices.
Number of Pages in PDF File: 47
Keywords: Technological Change, Innovation, Industry Evolution, Dominant Designs, Managerial Beliefs, Digital Photographyworking papers series
Date posted: December 6, 2010 ; Last revised: May 1, 2013
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