Experimentation Strategies and Entrepreneurial Innovation: Inherited Market Differences in the iPhone Ecosystem

Jason Davis (), Yulia Muzyrua () and Pai Ling Yin ()
Additional contact information
Jason Davis: INSEAD
Yulia Muzyrua: University of Michigan
Pai Ling Yin: Stanford Institute for Economic Policy Research

No 13-029, Discussion Papers from Stanford Institute for Economic Policy Research

Abstract: Although experimentation is critical to the innovation process in startups, little research has explored the link between different experimentation strategies and entrepreneurial innovation. We use unique data on experimentation strategies and innovation outcomes of firms producing iPhone applications to show that the appropriateness of different strategies depends on market characteristics. Simultaneous experimentation strategies are better suited to markets characterized by strong market inheritance, where innovative know-how, development technologies, and heterogeneous preferences from established markets can be leveraged by entrepreneurs. In markets with fewer skills, fewer developmental technologies, and less understood demand expectations, innovations are more likely to result from sequential product improvements based on customer feedback, allowing the entrepreneur to develop skills and clarify what may be singular customer preferences

Keywords: Keywords: Entrepreneur; Innovation; Technology; Strategy; Mobile Apps (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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