The dangers associated with being the first to operate in a novel environment is known as the ________.

Question

Quizplus · Accepted Answer

The term "liability of newness" refers to the potential risks and challenges that a company may encounter when entering a new and unfamiliar market. These risks can include lack of brand recognition, unfamiliarity with local regulations and business practices, and difficulty in building relationships with suppliers and customers. Being the first to enter a new market can also result in significant costs and investments in research and development, marketing, and infrastructure. As a result, companies that enter new markets face a higher risk of failure than those that operate in established markets.

The Dangers Associated with Being the First to Operate in a Novel