Managers in small firms often adopt a strategy ofintroducing new products in order to improve a small firm's ailing performance.Prospect theory suggests that individuals tend to take risks if they are in anegative decision context and motivated to seek any opportunity no matter howunrealistic,...

Previous research regarding innovative product introduction has often resulted in opposing outcomes. Some researchers have argued that market pioneers attain superior market share, achieve higher profitability, establish superior reputations, and gain cost advantages over later entrants while...