文档介绍：Khaled Aboulnasr, Om Narasimhan, Edward Blair, & Rajesh Chandy
Competitive Response to Radical
Product Innovations
Radical product innovations are often agents of creative destruction. They threaten to destroy existing market
positions, and yet they often yield vast new market opportunities. This article examines petitors respond
to the introduction of radical product innovations. The authors argue petitive response to radical product
innovations is inherently different from response to the incremental innovations that are typically studied in existing
research. They introduce the dual concepts of market expansion and entry thresholds to develop new hypotheses
petitive response. Some of these hypotheses contradict prior literature. Using objective data from the
. pharmaceutical industry between 1997 and 2001, they estimate a shared-frailty hazard model to explain the
competitive response to radical product innovations. The results show that the likelihood petitive response is
substantially higher when the introducing firm is large or market dependent. Moreover, the response is highest
when the innovation is introduced in a small market by a large firm. These results contradict those from much prior
research petitive response to product innovation.
Keywords: innovation, competition, market expansion, entry thresholds
he specter petition looms large in all product Chandy, and Prabhu 2003). They are also more likely to
introductions. Introducers try to predict - destabilize markets and cause customers to reconsider exist-
Tpetitors will respond and when. petitors ing purchase patterns. Thus, they not only threaten existing
scramble to introduce products of their own. Others petitive positions but also offer new market opportuni-
from action, perhaps from a fear of retaliation, lack of ties. However, the growing literature on radical product
financial resources, sloth induced by inertia, or a fear of innovation is largely silent on the issue p