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Concept Innovation in the Software Industry: 1990-2002

Elizabeth G. Pontikes

University of Chicago - Booth School of Business

January 1, 2016

Chicago Booth Research Paper No. 12-61

This study investigates concept innovation, when firms create new market category labels to differentiate their products. Data suggest that concept innovation is frequent. But little is known about its antecedents. This study proposes that concept innovation depends on both a firm’s technological inventions and constraints from existing classification. Firms that develop technologies that combine elements across market categories are more likely to engage in concept innovation – when categories are constraining. But when a firm’s categories are lenient, the relationship breaks down and leniency itself leads to concept innovation as firms attempt to resolve ambiguity in the environment. Results support hypotheses in a longitudinal analysis of concept innovation for 4,566 firms and 456 market categories in the software industry between 1990 and 2002.

Number of Pages in PDF File: 53

Keywords: Concept innovation, concepts, invention, innovation, categories, labels, classification, leniency, constraint, software

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Date posted: December 19, 2012 ; Last revised: June 9, 2016

Suggested Citation

Pontikes, Elizabeth G., Concept Innovation in the Software Industry: 1990-2002 (January 1, 2016). Chicago Booth Research Paper No. 12-61. Available at SSRN: http://ssrn.com/abstract=2191152 or http://dx.doi.org/10.2139/ssrn.2191152

Contact Information

Elizabeth G. Pontikes (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

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References:  36
Footnotes:  6

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