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Product innovation: a tool for competitive advantage

Author: Angelmar, Reinhard INSEAD Area: MarketingIn: European Journal of Operational Research, vol. 47, no. 2, July 1990 Language: EnglishDescription: p. 182-189.Type of document: INSEAD ArticleNote: Please ask the Library for this articleAbstract: This paper assesses the overall contribution of product innovation to competitive advantage, analyses the conditions under which such a contribution is likely, and discusses how this likelihood can be increased through company action. It concludes that pioneering is not riskier than following, and that successful pioneers enjoy substantial and lasting competitive advantages. Success depends on the innovation's relative advantage, compatibility, complexity, and the strength of the accompanying marketing effort. Lead time allows pioneers to build up resources that contribute to sustainability, but customer and technological changes may destroy the competitive value of these resources
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INSEAD Article Doriot Library
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This paper assesses the overall contribution of product innovation to competitive advantage, analyses the conditions under which such a contribution is likely, and discusses how this likelihood can be increased through company action. It concludes that pioneering is not riskier than following, and that successful pioneers enjoy substantial and lasting competitive advantages. Success depends on the innovation's relative advantage, compatibility, complexity, and the strength of the accompanying marketing effort. Lead time allows pioneers to build up resources that contribute to sustainability, but customer and technological changes may destroy the competitive value of these resources

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