Driving a More Prosperous Future

User Innovation and Product Stickiness: Evidence from Video Games
Journal of Economics & Management Strategy

Prior research on user innovation fails to explain its low adoption rate and neglects its impact on increased product stickiness. To bridge these gaps, we conducted an empirical investigation into user innovations within the video game sector. Our study reveals that embracing user innovation leads to an upsurge in the number of active players for a game. Furthermore, the marginal effect of user innovations varies depending on their recency and quality, with low-quality user innovations leading to user attrition. The effect is also contingent on the stage in the product life cycle in which user innovation is adopted.

Yunfei Wang, UMD and Peng Huang, UMD

• Innovation
• Product Management