Sequential Innovation in Mobile App Development

Problem definition: In today’s highly dynamic and competitive app markets, a significant portion of development takes place after the initial product launch via addition new features enhancement existing products. managing sequential innovation process in mobile development, two key operational questions arise. (i) What attributes should be added to products successive versions? (ii) How these implemented for greater market success? We investigate implications three different types activities on performance. Academic/practical relevance: Our study contributes operations management literature by providing an empirically based understanding its performance important industry terms size, scope potential. Methodology: Using novel data set apps Productivity category, we leverage text-mining information retrieval techniques rich release notes apps. then characterize at each version link with estimation model. also incorporate instrumental variables analysis substantiate our findings. Results: find that update dissimilarity (i.e., from those previous updates) is associated higher performance, especially mature orientation similarity focal firm’s respect recent additions competitors), This finding suggests rewards developers who have responsive policy their competitors’ efforts. results suggest rapid introduction updates dampens potential benefits might gain orientation. no evidence beneficial effect incorporating other subcategories) Managerial implications: offers managerial insights into exploring characteristics are success pursuing implementing attributes. Supplemental Material: The online appendices available https://doi.org/10.1287/msom.2022.1154 .