Firm newness, product novelty and aesthetic failure

Citation data:

Management Decision, ISSN: 0025-1747, Vol: 52, Issue: 10, Page: 1952-1967

Publication Year:
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Repository URL:
10.1108/md-02-2014-0055; 10.1108/md-02-2014-0055retrieved
Laplume, André O.; Srivastava, Manish K.
Business, Management and Accounting; Decision Sciences; Business
article description
Purpose – The purpose of this paper is to examine product failures in the consumer technology products industry to explain why some firms experience more aesthetic-related failures than others. Design/methodology/approach – The study uses a unique data set of failed high technology consumer products identified by expert product reviewers of 75 online magazines during 2000-2010. The variables are constructed using two coders as well as using an automated content analysis process based on the information provided in the online product reviews. The study tests a hypothesis using multilevel logistic regression techniques on a sample of 606 product reviews of 323 products associated with 171 firms. Findings – The study demonstrates that older firms are much more susceptible than younger firms to suffer from aesthetic-related product failures when they pursue product innovations that are new for them. Likewise, older firms suffer fewer aesthetics-related product failures than younger firms when they exploit products that well known to them. Originality/value – The study is highly novel in its research setting and empirical approach, and brings valuable insights for researchers and managers regarding challenges associated with aesthetic innovations for young and old firms.