1,720,991 research outputs found

    When do Industries Modularize? Firm Actions and the Role of Product and Organization Architecture

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    When industries modularize, the degree to which firms capture value can shift. This paper develops a conceptual framework to understand when industries modularize, and how firm actions influence such modularization. To do so, we first outline how modularity increases at the product and organizational level. We argue that industry modularity increases when product interfaces and organizational practices disseminate beyond the focal organization. Next, we highlight several moderating factors that influence this dissemination process. Overall, the paper attempts to contribute to the existing literature as follows. First, the framework highlights strategic actions at the product and organizational architecture level to understand changes in industry modularity, attempting to “endogenize” the structure of a given industry. Second, the conceptual framework suggests how industry architectures become more modular through dissemination of interfaces and practices, and proposes several moderating factors that influence this diffusion process. Third, the contingent perspective developed in the framework may reconcile diverging perspectives on the role of modularity and inter-firm coordination, in particular existing work on systems integration

    Pre-Entry Resources, Strategic Positioning Choices and Introduction of Dominant Designs

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    We investigate the role that strategic positioning choices and pre-entry endowments play in determining the post entry innovative performance of firms that enter new markets. We hypothesize that entrepreneurial entrants possessing greater levels of pre-entry endowments and those that choose to operate in multiple niches will introduce products with dominant design features earlier, while entrants that position themselves aggressively in new markets will lag behind in introducing such products. We also hypothesize that pre-entry endowments positively moderate the relationship between post-entry technology strategy choices and early introduction of dominant design features. We test our hypotheses using longitudinal data on entrepreneurial startups in the computer hard disk drive industry from 1974 to 1995

    Industry architecture as a determinant of successful platform strategies: a case study of the i‐mode mobile Internet service

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    What factors and processes drive value appropriation and value creation in interdependent industry ecosystems? This paper explores this issue through a case study comparing the deployment of the i-mode mobile Internet service in two countries, seeking the reasons behind its contrasting fortunes: spectacular success in Japan vs failure in Europe. The comparison between network operators NTT Docomo in Japan and KPN in the Netherlands suggests that differences in the underlying industry architectures explain why similar platform strategies led to such different outcomes. The paper contributes to the literature on industry architecture by unpacking the interaction between evolutionary processes, industry architecture, and business strategies. It also contributes to the platforms literature, by positing that firms’ ability to successfully pursue platform strategies depends on industry architecture

    Value Migration and Architectural Design Choices in Innovation Ecosystems: The Case of Cloud Computing

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    Our paper focuses on firms’ strategic decision making in innovation ecosystems, highlighting how expectations regarding compatibility and value migration influence architectural design choices. Based on a study of cloud computing, we analyze how firms strategically shape the design of an emerging technology architecture. Drawing on qualitative longitudinal data, we trace the development of these organizations and analyze firms’ design choices. In¬¬ particular, we highlight the processes by which interfaces are negotiated and adopted, as well as the ways in which competitive tensions are both encouraged and mitigated. This case contrasts with existing literature that assumes competing variants that are selected over time. Instead, industry participants might, learning from historical events, attempt to pre-empt these dynamics through collaboration and interest alignment of the various stakeholders

    From Decanter to Bottleneck: How Industry Evolution and Governance Inseparability Shape Value Capture

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    This paper provides a contingent perspective on value capture in ecosystems, combining insights from industry evolution and governance inseparability literatures. We argue that ecosystem leaders that enter a nascent ecosystem with existing network of partners enjoy high initial bargaining power, whereas lacking these partners when entering results in lower initial bargaining power for the ecosystem leader. In the presence of governance inseparability, the lower initial bargaining power of the ecosystem leader translates into initial governance arrangements agreed with other parties that constrain the future ability of the ecosystem leader to capture a greater share of the aggregate value created. In this case, it will not be sufficient to control a bottleneck segment in the future for higher value capture. This effect is further pronounced if the ecosystem leader started when the industry that the ecosystem serves was in its maturity stage, denoting slowed technological progress and demand growth, thus fewer opportunities for ecosystem-wide value creation. Conversely, higher initial bargaining power can safeguard future ability to capture value, indicating that it is not necessary to control a bottleneck. We illustrate our framework by showing why ARM, a firm that is in control of an apparent bottleneck segment in the semiconductor ecosystem (IP licensing), fails to capture a high degree of value

    Modular Components, Integrated Practices: Managing Inter-Organizational Collaborations and the Challenges of Coordination and Cooperation

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    Collaboration in large-scale projects introduces challenges involving both coordination (the ability to collaborate) as well as cooperation (the willingness to do so). Existing research has shown how modular designs can improve the challenge of coordination by concentrating interdependencies within rather than between different subsystems. Based on an in-depth case study of collaboration in a large-scale infrastructure project, our study highlights an effect of modularity on collaboration that previously has been overlooked. Specifically, we show that while modular designs may help overcome coordination challenges by reducing interdependencies between modules, it can in turn hamper cooperation by emphasizing specialization within modules. Therefore, though existing work typically perceives modularity and integration as opposites, we show how they can act as complements. Specifically, we show how firms need to complement modular designs with integration practices that stimulate cooperation. Overall, we contribute to the literature on collaboration and modularity by showing when and how organizations can combine modularity and integration in the context of complex collaboration

    Going Beyond Counting First Authors in Author Co-citation Analysis

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    The present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
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