Conference paper
Sensitivity to Experimental Feedback and the Trade-Off Between Product and Segment Performance
Academy of Management Annual Meeting Proceedings, v 2022(1)
Aug 2022
Abstract
How can entrepreneurs develop a high performing product in uncertain markets? The entrepreneurship literature suggests to continuously experiment with prototypes to learn from performance feedback. However, there is a lack of guidance about how feedback from experimentation should be used in order to find high performing product designs. To answer this question, we develop a formal simulation model and explore how entrepreneurs' ""sensitivity to feedback"", that is, how much weight is given to new information, shapes the search for a high performing product design. Our study reveals that feedback sensitivity constitutes a strategic trade-off between optimizing a specific product design and the discovery of higher performing product design segments. We provide implications for entrepreneurial decision making and the academic entrepreneurship and learning literature.
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Details
- Title
- Sensitivity to Experimental Feedback and the Trade-Off Between Product and Segment Performance
- Creators
- Daniel Albert - Drexel University
- Publication Details
- Academy of Management Annual Meeting Proceedings, v 2022(1)
- Conference
- Annual Meeting of the Academy of Management (AOM), 82nd (Seattle, Washington, United States, 05 Aug 2022–09 Aug 2022)
- Number of pages
- 1
- Resource Type
- Conference paper
- Language
- English
- Academic Unit
- Management
- Other Identifier
- 991019551620304721