Abstract
Established companies often struggle while start-ups gain market share by pursuing radical technological innovations. Research has found that internal organisational barriers can cause this incumbent’s curse, but it has not explored the role of external actors. Drawing on social judgements of organisations theory, we suggest that potential consumers possess firm stereotypes (i.e., warmth and competence perceptions), which affect their expectations about the success of established companies and start-ups in pursuing radical technological innovations. Findings from three experimental studies show that established companies are perceived as more competent but less warm than start-ups. This perception leads to higher success expectations for established companies pursuing radical technological innovations. Yet, these benefits are no longer present after the revelation of information about a fatal error.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
