Abstract

This study examines the impact of a product portfolio strategy on firm survival in the global unmanned aerial vehicles (UAV) or drone industry, which serves as an emerging innovation ecosystem. Utilizing a sample of firms from across the world in the UAV industry, we find that firms operating with a product portfolio that is specialized as well as active face a lower hazard of exit compared to firms that operate with a portfolio that is either less specialized or less active. Our findings have important implications for firm strategy, positioning, and interaction with new technologies within an emerging innovation ecosystem.

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