Product Idea Sourcing Variety and Market Performance

Abstract

Diverse product idea sourcing can increase a chance of creating noble combination of product ideas while it lowers product idea integrity by hindering an overall product fit among interdependent product ideas and features. Using the Korean popular music industry case from 2004 to 2013, this study proposes that high and low idea sourcing varieties show high product market performance while the moderate level of idea sourcing variety leads to low product market performance, indicating the U-shaped relationship. Further, the analysis suggests that the decision-making group size influences the shape of the curvilinear relationship between product idea sourcing variety and product market performance as it influences the idea selection process. This paper offers a more nuanced explanation about a relationship between product idea diversity and integrity effects.