Innovation and Competition in Standard-Based Industries: An Analysis of the High Definition U.S. Home Video Market

This paper examines the competitive dynamics in a standard-based industry through a historical examination of the U.S. home video industry. It analyzes how the Blu-ray technology wins the battle of the high definition DVD market over HD-DVD technology, by focusing on the aspects of the first-mover advantages, network effects. The analysis suggests that the success in the network-based industry partially support to traditional argument on first-mover advantages; they were important only to the point that the first mover takes advantages of the lead time to develop a network of complementary products. This study illustrates that building a network of complementary products and installed base should be the primary goal to succeed in the standard setting competition

Entry Strategies for De-Alio Firms in the Digital Music Player Industry

Master'sMASTER OF ENGINEERIN

Essays in Knowledge Transfer

This dissertation advances our understanding of when firms are able to get information from outside agents and the impact of that information on innovation. In chapter one, I set up a theoretical model that illuminates how vertical integration changes the incentives for producers to share information with suppliers. Both transaction costs and bargain ability play major roles in information sharing. One result from chapter one is that producers share less information with vertically integrated suppliers. The second chapter tests this prediction, finding robust evidence that once a supplier vertically integrates, it gains fewer spillovers from competitor producers. Finally, the last chapter looks at how information brought by an external CEO can change the firm’s innovation direction. The third chapter finds that external CEOs tend to shift the direction of innovation less often that internal hires

Creating Discontinuous Innovation: The case of Nintendo's Wii

Master'sMASTER OF ENGINEERIN

The role of institutional entrepreneurship in standard wars: the case of Blu-ray Disc

The study is to use institutional entrepreneurship perspective to complement the functionalist’s viewpoint to understand the process underlying collective action in a mature eco-system and how institutional entrepreneurs manage critical stakeholder relations, collective action and discursive activities in technical standard change processes. The standard war of Sony Blu-ray Disc vs. Toshiba HD DVD is used as a critical and intrinsic case. The functionalist’s viewpoints have paid much attentions to the numbers of customers adopting new technologies, and etc. By means of institutional entrepreneurship perspective, it claims that it does not matter about the number and amount, but it does matter about how focal firms make the markets believe that they have the abilities to win standard wars. The study further claims that the variables studied in functionalist’s viewpoint also have the meanings of institutional entrepreneurship perspective. Moreover, the BD and HD DVD standards are incremental innovations in a mature field where there are many things are settled down. Focal firms can easily forecast the expectations of the dominant institutional logics. The study contributes that institutional entrepreneurship perspective still provides the process insight to complement the functionalist’s viewpoint. This perspective can be applied in emerging field, where it is no dominant logics and the innovations are likely to be radical. The BD case represents a critical case. It can makes possible naturalistic generalization to other similar contexts. Eisenhardt’s principles are used to build theory from the case study. I borrowed techniques of open coding to analyze the data. The findings show that collective action (including critical stakeholder management and structuring collaboration capabilities) and discursive activities are the central features of institutional entrepreneurship. They have mutual relationship with the institutional entrepreneur’s resources (power and legitimacy). Furthermore, good collective action and discursive activities can lead to network effects and product performance

Standards Battles for Complex Systems: Empirical Research on the Home Network

Home networks combine components and technologies from the consumer electronics industry, the information technology industry, the telecommunications industry, and the home automation industry. Irrespective of the fact that the home network has been technically possible for many years, it has not become a practical reality. A major reason is the lack of generally accepted common standards. In this dissertation we develop a framework with which we can explain and predict which standard will have the highest chance of achieving dominance. We applied the framework to several standards battles and it appeared that it can be used to explain these standards battles better, when compared to existing frameworks in the literature. We applied a multi-attribute utility approach to standard selection and provide a first indication of weights for factors. Also, we have studied two factors in depth: the diversity in the network of actors that support a standard; and the flexibility of the standard. We provide a first indication that these variables influence standard dominance positively and reinforce each other

Technology responsiveness for digital preservation: a model

Digital preservation may be defined as the cumulative actions undertaken by an organisation or individual to ensure that digital content is usable across generations of information technology. As technological change occurs, the digital preservation community must detect relevant technology developments, determine their implications for preserving digital content, and develop timely and appropriate responses to take full advantage of progress and minimize obsolescence. This thesis discusses the results of an investigation of technology responsiveness for digital preservation. The research produced a technology response model that defines the roles, functions, and content component for technology responsiveness. The model built on the results of an exploration of the nature and meaning of technological change and an evaluation of existing technology responses that might be adapted for digital preservation. The development of the model followed the six-step process defined by constructive research methodology, an approach that is most commonly used in information technology research and that is extensible to digital preservation research. This thesis defines the term technology responsiveness as the ability to develop continually effective responses to ongoing technological change through iterative monitoring, assessment, and response using the technology response model for digital preservation

Google and Apple’s Gale of Creative Destruction.

Creative destruction is an economic theory of innovation popularised by Austrian economist Joseph Schumpeter. In this paper, Schumpeter’s theories are used to explain how radical technological innovations in information-intensive industries are influencing the erosion of traditional industry and market boundaries leading to the emergence of new competitive business models and strategies. Developments in digital technology has resulted in new technological shifts and market linkages resulting in dilemmas for the existing incumbents in traditional industries who find themselves increasingly trapped and victims of a new innovation logic. The new value innovation logic is being driven by entrepreneurs such as Page and Brin (Google) and Jobs (Apple) who are currently in the process of revolutionising the economic structures of many industries and creating new markets and organisational business models in a gale of creative destruction reminiscent of the theories developed by Sombart and Schumpeter. This creation of new market models and their impact on established industries are explained further in the value chain evolution theory and its corollary sustaining innovation classification-scheme. These theories reinforce the view that innovators, thinking in new and radical ways, provide sustainable new market developments and earn above the average revenues compared to incumbents, whose profit pools have eroded. This paper researches and analyses the impact that Google and Apple are having upon a broad range of information-intensive industries and the strategic options of the incumbent firms in the respective traditional industries in response to this radical change. Its purpose is to provide explanations of why and how radical innovators are able to redefine the rules of the market leading to economic growth and development. Keywords: creative destruction, prosumer, monetize, incumbents, institutionalizatio