Reviewing Industry Life-cycle Theory: Avenues for Future Research

Authors

  • Mirva Peltoniemi

    Corresponding author
    1. Aalto University School of Science, Institute of Strategy, Finland
      Aalto University School of Science, Institute of Strategy, PO Box 15500, FI-00076 Aalto, Finland, email: mirva.peltoniemi@tkk.fi
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  • Acknowledgements: The author wishes to thank Mikko Jääskeläinen, Pasi Kuusela, Juha-Antti Lamberg and three anonymous reviewers for helpful discussions and comments on previous versions.

Aalto University School of Science, Institute of Strategy, PO Box 15500, FI-00076 Aalto, Finland, email: mirva.peltoniemi@tkk.fi

Abstract

This paper explicates the key mechanisms and research themes of industry life-cycle theory and assesses the extent to which empirical evidence supports such an approach. It is based on a review of 216 industry life-cycle studies. The review of the theory is organized around industry emergence and transition to industry maturity. The key research themes concern changes in industry structure, changes in the nature of innovation, and the determinants of survival. Three potential special cases, i.e. services, complex products and systems, and cultural industries, are identified, and five research questions for future enquiry are presented.

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