Journal ArticleDOI
Establishing a standard: Competitive strategy and technological standards in winner-take-all industries
Reads0
Chats0
TLDR
The ability of a firm to establish its technology as an industry standard is a critical determinant of its long-term competitive position and success as mentioned in this paper, which is the case of Microsoft and Intel whose technologies define standards in today's personal computer industry.Abstract:
Executive Overview The ability of a firm to establish its technology as an industry standard is a critical determinant of its long-term competitive position and success. Witness, for example, the successes of Microsoft and Intel, whose technologies define standards in today's personal computer industry. The strategic options that a firm might adopt in order to establish its technology as a standard include licensing, entering into strategic alliances, adopting an appropriate positioning strategy, and diversifying into the production of complementary products. There are benefits, costs, and risks associated with each of these options. The key factors that have an impact on the scale of these outcomes include the height of barriers to imitation, the capabilities of the firm's competitors, the firm's own resources and skills, and the availability of complementary products. These factors influence the particular competitive strategy that a firm adopts.read more
Citations
More filters
Journal ArticleDOI
Incumbent's advantage through exploiting complementary assets via interfirm cooperation
TL;DR: In this article, the authors examine interfirm cooperation between incumbents and new entrants as a mechanism for incumbents to adapt to radical technological change through exploitation of complementary assets, and find that incumbents that focus their network strategy on exploiting complementary assets outperform incumbents who focus on exploring the new technology.
Journal ArticleDOI
Balancing vertical integration and strategic outsourcing: effects on product portfolio, product success, and firm performance
TL;DR: The hypothesis is that balancing vertical integration and strategic outsourcing in the pursuit of taper integration enriches a firm's product portfolio and product success, and in turn contributes to competitive advantage and thus to overall firm performance.
Journal ArticleDOI
Complementary assets, strategic alliances, and the incumbent’s advantage: an empirical study of industry and firm effects in the biopharmaceutical industry
TL;DR: In this paper, the authors argue that incumbents may be in a position to adapt to radical technological change via interfirm cooperation with new entrants when the incumbents have complementary assets within their firm boundaries that are critical to commercializing the new technology.
Journal ArticleDOI
Entry into Platform-Based Markets
Feng Zhu,Marco Iansiti +1 more
TL;DR: In this paper, the authors analyze a model where an entrant platform with superior quality competes with an incumbent platform and find that the entrant's success depends critically on the strength of indirect network effects and the consumers' discount factor of future applications.
Journal ArticleDOI
Network effects and competition: an empirical analysis of the home video game industry
Venkatesh Shankar,Barry L. Bayus +1 more
TL;DR: In this article, the authors empirically study the impact of a unit increase in network size on demand in the 16-bit home video game industry and find strong evidence that network effects are asymmetric between the competitors.
References
More filters
Journal ArticleDOI
The Economic Institutions of Capitalism
TL;DR: The Economic Institutions of Capitalism as mentioned in this paper is a seminal work in the field of economic institutions of capitalism. Journal of Economic Issues: Vol. 21, No. 1, pp. 528-530.
Journal ArticleDOI
Competing technologies, increasing returns, and lock-in by historical events*
TL;DR: In this article, the authors explore the dynamics of allocation under increasing returns in a context where increasing returns arise naturally: agents choosing between technologies competing for adoption, and examine how these influence selection of the outcome.
Journal ArticleDOI
Technology Adoption in the Presence of Network Externalities
Michael L. Katz,Carl Shapiro +1 more
TL;DR: In this article, the authors analyze the adoption pattern of technologies in industries where network externalities are significant and find that the pattern of adoption depends on whether technologies are sponsored by an entity that has property rights to the technology and is willing to make investments to promote it.
Journal ArticleDOI
Causal Ambiguity, Barriers to Imitation, and Sustainable Competitive Advantage
Richard Reed,Robert DeFillippi +1 more
TL;DR: In this article, it is argued that tacitness, complexity, and specificity in a firm's skills and resources can generate causal ambiguity in competency-based advantage, and thus raise barriers to imitation.