Diffusion of product signs in industrial networks: the advantage of the trend‐setter

Claudio Dell'Era and Roberto Verganti

European Journal of Innovation Management, 2010, vol. 13, issue 1, 81-99

Abstract: Purpose - Nowadays, the strategic role of design is reinforced by the increased attention that customers pay to the aesthetic, symbolic and emotional values of products. These values can be communicated through the appropriate combination of product signs (such as form, colours, materials and so on), which gives meaning to a product. Consequently, companies are investing substantial efforts in appropriate strategies for the development of product signs and languages. Firms must understand how knowledge about new products signs diffuses in industrial networks in order to be able to access and exploit it. The purpose of this paper is to ask, does the capability to propose new product trends allow companies to be recognized as innovators? Does the early adoption of product signs positively affect consumer preferences? Design/methodology/approach - An empirical analysis is conducted on strategies regarding a specific type of product within the Italian furniture industry (namely, chairs). In particular, the paper explores the roles played by furniture companies in the diffusion processes of product signs. Analysing approximately 300 chairs marketed by 35 leading Italian furniture manufacturers between 1996 and 2005, the paper explores different strategies adopted in the diffusion processes of product signs. Findings - The empirical results illustrate how trend‐setters are able to attain the best performance in terms of innovativeness and, in part, consumer preferences by forwarding new interpretations of existing material combinations starting at the early phases of diffusion. Originality/value - The paper analyses the different roles played by companies in the diffusion processes of product signs and thus provides interesting insights regarding the exploitation of the industrial resources of companies.

Keywords: Competitive strategy; Innovation; Product design; Italy; Furniture industry (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ejimpp:14601061011013249

DOI: 10.1108/14601061011013249

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