The danger associated with being first in a new environment is known as ________.

Question

Quizplus · Accepted Answer

The liability of newness refers to the risks and uncertainties that a firm or organization faces when entering a new market or environment. This can include things like lack of brand recognition, unfamiliar regulations and cultural norms, and untested business models. Being the first mover in a new environment comes with added risks and uncertainties, hence the "liability" of being new. A, C, and D are not related to the concept of the liability of newness.

The Danger Associated with Being First in a New Environment