Abstract

Invoking a learning perspective, this paper examines the technological evolution in the tennis racket industry. We focus on the interface between firms and their consumers. Through endorsements by star players, as 'lead-users,' as well as through advertising, firms support their strategic renewal efforts as indicated by new product introductions, create a tipping point and tilt the market in their favor. The empirical results on endorsements and advertising show that manufacturers of new sport equipment involve consumers in a process of joint-learning that fosters the spread of discontinuous innovations - i.e., new model introductions. Endorsements are critical when the product is novel, but when they age advertising takes their place in sustaining diffusion of innovation. We conclude that innovators can and should condition the selection environment in their favor because uncertainty and ambiguity involving radical innovations open up the window of opportunity to do so. The findings are also suggestive for issues of strategic renewal.