Title: Cognitive biases in innovation ecosystems: global luxury fashion on the eve of post COVID-19 recovery

Authors: Manel Arribas-Ibar; Nuria Arimany-Serrat; Petra A. Nylund

Addresses: Department of Marketing Management, ESIC Business & Marketing School, Passeig Santa Eulàlia 2, 08017 Barcelona, Spain ' Department of Economics and Business, University of Vic-Central University of Catalonia, Sagrada Família 7, 08500 Vic, Spain ' Institute of Entrepreneurship and Innovation Science, University of Stuttgart, Pfaffenwaldring 19, 70569 Stuttgart, Germany

Abstract: Luxury fashion is an innovation ecosystem experiencing great change, and the COVID-19 pandemic has accentuated some of these dynamics. With roots in a traditional industry, certain cognitive barriers impede interaction within the luxury fashion ecosystem. We therefore analyse the factors that drive innovation and technological change through an inductive case study of this specific ecosystem. We identify and analyse six biases within the luxury fashion ecosystem that are affecting the cognitive barriers of the ecosystem. Consequentially, we propose that consumer bias impedes a transition from the traditional luxury customer to a more differentiated consumer. Market-segmentation bias can hinder necessary micro-segmentation to reflect new needs. Product bias obscures possible product innovation due to excessive brand focus. Sourcing bias toward traditional partners slows the move towards sustainability. Second-hand market bias stops fashion brands from fully exploiting circular business models. Finally, ambidexterity bias may block the exploration of new markets necessary following a crisis. Implications for research and practice are discussed, including the need to develop more adaptive and flexible strategies through open innovation that adapts to the phases of recovery from the pandemic.

Keywords: innovation; innovation ecosystem; product development; cognitive bias; luxury fashion.

DOI: 10.1504/IJBG.2025.146217

International Journal of Business and Globalisation, 2025 Vol.40 No.2, pp.107 - 129

Received: 29 Oct 2020
Accepted: 11 Oct 2021
Published online: 13 May 2025 *

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