The determinants of the choice between a leader versus a follower strategy are
A)the extent of protection of the innovation, the nature of the knowledge involved, and the potential to establish a standard.
B)the development cost of the innovation, the importance of complementary resources, and the shape of the economy.
C)the extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources.
D)the potential to establish a standard, the relative powers of the other players in the industry, and the development cost of the innovation.

Question

Quizplus · Accepted Answer

The determinants of the choice between a leader versus a follower strategy are the extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources. These factors play crucial roles in determining whether a firm should pursue a leader or follower strategy. If the innovation can be protected, establishing a standard can be leveraged, and complementary resources are available, it may be advantageous to pursue a leader strategy. On the other hand, if protection is limited, and complementary resources are critical, it may be more appropriate to pursue a follower strategy. Option C includes all the relevant factors and is, therefore, the best choice.

The Determinants of the Choice Between a Leader Versus a Follower