Innovation Imprinting: Why Some Firms Beat the Post-IPO Innovation Slump

Growth and innovation are primary arguments for firms that aim to go public access resources from the stock market. So it is ironic going is, a majority of firms, associated with pronounced slump in breakthrough innovation. This article proposes an actionable, marketing-related explanation why some manage beat post–initial offering (IPO) slump: imprinting. The authors argue demonstrate engage imprinting before attract segment concordant investors whose risk preferences more supportive than at large. These investors, turn, reward firms’ continued introduction innovations after they have gone public. By analyzing patterns 207 consumer packaged goods sector IPO, observe one-third able maintain or their pre-IPO levels studying actions, attract, financial performance survival rates, provide empirical evidence importance helping post-IPO slump.