Accelerated Interaction Between Firms And Markets In ICT-Based Venture Businesses – The Case Of Mobile Phone Business Ventures In Japan | Miyuki Mitsuda & Chihiro Watanabe

Notwithstanding the strong expectation that new ventures can induce new innovation leading to national vitalization, unexpected impediments always lie ahead of new ventures. One of the most crucial impediments could be the ?CHASM,? a deep trench that lies between minor and major markets. The breeding stage of new ventures can be divided into the five sub-stages of innovator, early minority, early majority, late majority and the latest, and the CHASM lies between the second and third sub-stages. In actual practice, it serves to repel new ventures that have advanced to the second stage. In light of the possibility that the bond percolation theory of a percolation mechanism can be applied to network formation and co-evolution as an outside factor that induces successive innovation, this paper attempts to apply this theory to new ventures making efforts to overcome the CHASM impediment. The case of Japan?s mobile phone business ventures was examined, and it was demonstrated that the degree of percolation obtained by ventures publicizing their names can trigger self-propagating growth that enables them to overcome their CHASM.