Communication Strategies of Entrepreneurial Organizations in Mobile Apps Industry: Hidden Communication Prior to Product Launch

Abstract

This research advances scholarly understanding of the strategic decisions regarding external communication during the critical period of product launch. Drawing on research about dynamic capabilities and external organizational communication, this study examines ways in which entrepreneurial organizations use silence as an effective communication strategy to reduce external uncertainty and to nurture growth during critical periods of development. Data were collected tracking the external communication of 54 entrepreneurial organizations that focus on mobile news application development. Results show a significant relationship between the attention organizations attract after product launch and an organization’s performance. The greater the magnitude of change from pre-launch to post-launch, from less frequent external communication to more frequent external communication, the more likely there is to be an increase in the product performance. The findings emphasize a more nuanced understanding of external communication as a strategic tool in entrepreneurial organizations.