Optimal Distinctiveness in Emerging Technology Fields: Pre-Market Discourse and Valuation

Academy of Management Proceedings, vol. 2026

Abstract

Organizations need to distinguish themselves from their competitors in order to be successful - but at the same time, they must meet certain expectations to be seen as credible and legitimate. This is the core paradox of optimal distinctiveness (OD) theory. While OD is typically explored in stable markets, this study extends the theory to uncertain, emerging technology contexts (unstable markets) with unknown industry logics and before innovations materializes. We propose that in these “pre-market” environments, the relationship between distinctiveness and performance is not structurally predetermined but is communicatively constructed through technology discourse. Analyzing technology discourse surrounding hydrogen within around 110.000 earnings calls of the S&P 1500 over the last 25 years we find empirically that technology discourse distinctiveness exhibits no significant inverted U-shaped relationship with performance. However, the relationship changes significantly when moderating for technology discourse volume. High discourse volume flattens the inverted U-shaped curve, turning a illegitimacy discount into a neutral position. Furthermore, technology discourse ambiguity also moderates the relationship, where low ambiguity shifts the profile to neutralize the legitimacy penalty associated with high distinctiveness. We demonstrate that for emerging technologies, distinctiveness is a latent signal that yields value only when amplified by high-volume or low-ambiguity technology discourse. Thus, the “optimal” distinctiveness trade-off is not structurally determined but communicatively constructed through the strategic clarity and intensity of the organization’s narrative.

Authors 2

1. Jan-Marco Nepute Aachen

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen University

2. Torsten Oliver Salge Aachen

   RWTH Aachen University

   Affiliation as printed

   RWTH Aachen University