The Innovation Waltz: Unpacking Developers’ Response to Market Feedback and Its Effects on App Performance

Yusheng Zhou, Bingqing Xiong, Jiantao Zhu, Eric Tze Kuan Lim, Chee Wee Tan

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

To remain competitive in the intensely competitive mobile app market, developers often rely on user feedback to fuel the innovation process. Past studies, however, have rarely examined the impact of developers’ incremental innovation strategies by treating app innovation as a continuous process. This knowledge gap prompted us to advance a framework of developers’ incremental innovation strategies comprising four coping strategies: sailing, optimizing, supplementing, and patching. Employing a multi-state Markov model to capture the probability of a developer employing an incremental innovation strategy in response to distinct types of market feedback during the app innovation process, we analyze data sourced from the Android app store that consists of 4,583 apps, 29,307 updates, and 231,817 reviews. We discovered that market feedback affects the adoption of the four incremental innovation strategies differently. Additionally, we found that sailing, supplementing, and optimizing strategies boost app downloads, while supplementing, optimizing, and patching strategies improve app ratings.
Original languageEnglish
Title of host publicationProceedings of the 44th International Conference on Information Systems (ICIS 2023)
Place of PublicationHyderabad, India
Publication statusPublished - Dec 2023
Externally publishedYes

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