The joint influence that service cost and product architecture exert on sequential innovation decisions

Guojun Ji, Angappa Gunasekaran, Yao Lv

Research output: Contribution to journalArticlepeer-review

Abstract

Different product architecture requires different methods of sequential innovation. Hence, firms make sequential innovation decisions based on both pricing and product architecture. As consumers become familiar with product development paths and with an increasing demand for product quality, some customers (quality-concerned strategic customers) prefer to wait for product quality improvement before purchase. In some industries, service cost, the cost of providing product and service support, is extremely high, but is frequently ignored. Therefore, based on extant research, we investigate the innovator's sequential innovation decisions, and investigate the effect service costs exerted on sequential innovation through mathematic modelling and numerical analysis.

Original languageEnglish (US)
Pages (from-to)63-77
Number of pages15
JournalInternational Journal of Systems Science: Operations and Logistics
Volume2
Issue number2
DOIs
StatePublished - Apr 3 2015

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Information Systems
  • Management Science and Operations Research
  • Information Systems and Management

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