TY - JOUR
T1 - The joint influence that service cost and product architecture exert on sequential innovation decisions
AU - Ji, Guojun
AU - Gunasekaran, Angappa
AU - Lv, Yao
N1 - Funding Information:
This work is supported by the grands from the National Natural Science Foundation project of China (NSFC) [project number 71371159 and project number 71201138], the National Ministry of Education of China (Humanities and Social Science) [project number 12YJC63026] and the Fujian Provincial Natural Science Foundation Project [project number 2012J01304].
Publisher Copyright:
© 2015, © 2014 Taylor & Francis.
PY - 2015/4/3
Y1 - 2015/4/3
N2 - 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.
AB - 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.
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U2 - 10.1080/23302674.2014.992492
DO - 10.1080/23302674.2014.992492
M3 - Article
AN - SCOPUS:85057038340
VL - 2
SP - 63
EP - 77
JO - International Journal of Systems Science: Operations and Logistics
JF - International Journal of Systems Science: Operations and Logistics
SN - 2330-2674
IS - 2
ER -