How to design prototypes to prevent potential dominant logic conflict during the iterative learning process

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Although prototype-based iterative learning is receiving increasing attention from research on lean startups, this stream of literature has a narrow focus on customer feedback and neglects the challenges of managing internal cognitive coherence during iterative learning processes. Without a shared dominant logic, the iterative revision of a prototype may fail. This research addresses this limitation by distinguishing the effects of different prototype strategies on dominant logic conflict and examining the moderating effect of socialization. Four hypotheses are developed and examined with survey data from 299 Chinese high-tech firms. We find that a basic prototype strategy results in low dominant logic conflict while an enhanced prototype strategy results in high dominant logic conflict during prototype-based iterative learning. Furthermore, socialization amplifies the negative and positive respective effects of these two prototype strategies. This research contributes to the literature on prototype-based iterative learning (e.g., for lean startups) and offers new managerial implications for practice.