Abstract
The phenomenon of servitization paired with digitalization has resulted in an emerging research stream referred to as digital service innovation (DSI). DSI has attracted much interest in academia and industry, given its increasing economic importance. However, extant innovation research still exhibits a strong product innovation focus and limited attention to the end of the innovation process, especially the determinants of innovation success. We investigate the role of market entry strategies for DSI success in digital service and platform settings. Drawing on a novel sample of 325 DSIs in the mobility sector, we examine the role of three types of market entry strategies, that is, market entry order, brand extensions, and home country advantage on the success of the DSI. The results indicate that early market entry and individual brands rather than extensions of existing brands are relevant determinants of DSI success, and that this impact depends on the level of business model innovativeness and competitive intensity. By examining the uniqueness of market entry strategies for DSI success, this paper adds novel insights for DSI and their success factors to the digital and service innovation literature. In doing so, we also suggest essential strategies that help practitioners advance DSI performance.
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