The design sourcing choice and technological performance in the upscale and downscale markets of an architectural innovation

In this study, we investigate the performance impacts of design sourcing choices in addressing an architectural innovation from its originating market to subsequent markets. We maintain that effects internalization and externalization on technological firms' products may vary across markets with different requisite demands due dynamics knowledge spillovers exchange hazards those hypothesize is likely outperform when facing a upscale higher than market. The case then reverse downscale lower requisite. test our hypotheses empirical contexts US bicycle which index gear-shifting technology (i.e., innovation) originated road 1985 subsequently traversed mountain market) 1987 city 1988. results are largely line hypotheses. contributions study current literature as well managerial implications also discussed.