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Abstract
This article aims at understanding how the relationship between incumbents and newcomers evolves in the presence of an architectural innovation. Building on the literature on architectural innovation, it focuses on local entrepreneurial activities related to the development of new complementary assets and on the redefinition of the incumbents’ and newcomers’ roles in the new product system. It draws on an exploratory study conducted on the digital music industry and takes Italy as the geographic setting for local entrepreneurial activities. Based on the analysis of the empirical material, it presents four propositions shedding light on the complexity of the relationship between incumbents and newcomers, especially under architectural innovation.
