Technological Existence Cycles Article

Economics and Managing of Advancement

EMI Conversation Paper Series #2009-04

ISSN 1877-3834

Faculty of Technology, Policy and Management

Jaffalaan 5, 2628 BX Delft, The Netherlands

Email: e. [email protected] nl

Tel: +31 (0)15 27 81150

TECHNOLOGY CRITERIA BATTLES AND NETWORKS

DURING THE TECHNOLOGY LIFE CYCLE:

THE BATTLE BETWEEN HD DVD MOVIE AND DIGITAL VERSATILE

Erik living room Hartigh, Roland Ortt, Geerten van para Kaa & Claire Stolwijk c. c. m. [email protected] nl

Division of Technology, Strategy & Entrepreneurship

Delft University of Technology

G. O. box 5015

2600 GA Delft

The Netherlands

ABSTRACT

In this article all of us explore the alterations in the framework and formula of systems supporting technologies during the phases of the technology life routine. We contemplate the technology life routine phases simply by integrating two existing frames of Ortt and Schoormans (2004) and Suarez (2004). Based on theory, we believe networks of actors around a technology are one the key factors causing technology achievement. Based on existing theory, we formulate expectations of how network structure and composition modify during the technology life cycle. We in that case perform a case study of the technology battle between the HD DVD MOVIE and Digital versatile technologies, through which we try to identify these changes. The confrontation from the theoretical anticipations and the case reality leave us with a space. The prominent logic with the all-important network and the coevolution between the network and technology appears not enough to explain the outcome of this technology battle. We suggest that strategic behavior should not be overlooked and that therefore you should be more crucial towards the dominant theoretical logic.

KEYWORDS

Technology standards, technology life cycle, networks, approach JEL Category

L24, M10, O32, O33

1 . ADVANTAGES

For corporations participating in technology standards fights the stakes are substantial. Losing a standards fight can result in large losses (Shapiro and Varian inc., 1999). Betting on the incorrect standard may even result in firms leaving the marketplace. For companies, therefore , the choice of which common to support is an important one. It is characterized by a high level of uncertainty about which usually standard is going to eventually achieve dominance. This kind of uncertainty features only improved with the shortening of the occasion for standards battles. In the mid-19th hundred years, the battle for train track width in the US held up for multiple decades (Shapiro and Ragam, 1999). The recent fight for a high definition video disc standard, HI-DEF DVD vs Blu-ray, lasted only about half a dozen years.

To generate optimal usage of the occasion and to reduce risks of betting within the wrong standard, there is a crystal clear need for companies to better be familiar with factors that influence common dominance. Several researchers include studied (historical) standards battles like the types mentioned above and still have found elements that can be decisive for earning or burning off such battles (e. g., Lee et al., 1995; Schilling, 1998; Suarez, 2004). Other studies have employed concepts by social network literary works to study the influence of network qualities on development diffusion (e. g., Abrahamson and Rosenkopf, 1997). Lately these fields of analysis have come together, and researchers

try

to

explain

technology

selection

via

differences

in

network

attributes (e. g., Suarez, june 2006; Weitzel ainsi que al., 2006). Still, expertise on how network characteristics are related to technology standards fights is limited. In this post we make an effort to make a little contribution to closing this kind of gap. One thing that can be observed from the illustrations mentioned above is that the number of different stakeholders involved in the standards battles improves as solutions are becoming more advanced. In the challenge for a standard railroad trail width, stakeholders included only one big customer, i. e., the Union, and two standard...

Sources: Abernathy, W. J., and Utterback, T. M. (1978). Patterns of industrial innovation.

Antonelli, C. (1997). Percolation operations, technological externalities and the evolution

of technical clubs

Arthur, W. M. (1989). Competitive technologies, raising returns, and lock-in by simply

historical tiny events

Borgatti, S. P. and Everett, M. G. (1999). Types of core as well as periphery constructions. Social

systems, 21, 375-395.

Brouwer, T. J. and Moerman, L. A. (2005) Angelsaksen vs Rijnlanders. Antwerpen:

Garant.

Burt, R. S i9000. (1992). Strength Holes: The Social Composition of Competition. Cambridge

(MA): First Harvard University Press.

Burt, Ur. S. (1997). A note on social capital and network content. Social support systems, 19(4),

355-373.

Cainarca, G. C., Colombo, M. G. and Mariotti, S. (1992). Agreements between firms and

the technology life cycle model: evidence from data technologies

Capaldo, A. (2007). Network structure and development: the leveraging of a dual network

as being a distinctive relational capability

Chung, J-W., Bae, Z-T. and Kim, M. S. (2003). Changing habits of technical

cooperation actions of innovative small organizations along technological development periods

Computerworld (2008). Toshiba abandons HD DVD, Toshiba makes announcement it will prevent

producing

David, P. A. (1985). Clio and the economics of QWERTY. The American Economic Assessment,

75(May), 332-337.

Den Hartigh, E. and Langerak, N. (2001). Taking care of increasing comes back. European

Administration Journal, 19(4), 370-378.

Farrell, J. and Saloner, G. (1985). Standardization, compatibility and innovation. Seite

Journal of Economics, 16(1), 70-83.

Farrell, J. and Saloner, G. (1986). Mounted base and compatibility: innovation, product

preannouncements and predation

FAS. exploration (2006). Excellent Networks. Vienna: FAS. analysis.

Gallagher, S. and Recreation area, S. They would. (2002). Innovation and competition in standard-based

industries: a historical evaluation of the U. S

Gargiulo, M. and Benassi, M. (2000). Caught in your own net? Network combination,

structural slots, and the edition of interpersonal capital

Homosexual, B. and Dousset, M. (2005). Advancement and network structural mechanics: study of

the alliance network of your major sector of the biotechnology industry

Gort, M. and Klepper, S. (1982). Period paths inside the diffusion of product enhancements. The

Financial Journal, 92, 630-653.

Granovetter, M. S i9000. (1973). The strength of weak jewelry. The American Journal of Sociology,

78(6), 1360-1380.

Katz, M. M. and Shapiro, C. (1985). Network externalities, competition, and compatibility.

Katz, M. M. and Shapiro, C. (1994). Systems competition and network effects. Record of

Monetary Perspectives, 8(2), 93-115.

Shelter, J., Um 'Neal, G. E., Pruett, M. Watts. and Jones, H. (1995). Planning for dominance: a

proper perspective within the emergence of your dominant design

Mark Ur., (2007), " HD DVD MOVIE players move 750, 000 unit sales". TG Daily.

Murmann, J. P. and Frenken, T. (2006). Toward a systematic framework for analysis on

major designs, technological innovations, and professional change

Microsoft Corporation (2006). Gates Sets out Vision for the Digital Lifestyle and

Showcases New items and Systems From Microsoft.

Nakamoto, Meters. (2005). " Sony-Toshiba DVD format reveals stall". ft. com.

Ortt, J. Ur. and Schoormans, J. L. L. (2004). The pattern of expansion and diffusion of

cutting-edge communication technologies

Orrt, J. R., Shah, C. T. and Zegveld, M. A. (2007). Ways to commercialise

breakthrough discovery technologies

PC World (2003). Sony Displays First Digital versatile Recorder.

Podolny, J. Meters. and Grande, J. In. (1997). Resources and human relationships: social networks and

mobility at work

Pruitt, To. (2008). Warner Swayed Simply by $500 Million From The BDA.

Schilling, M. A. (1998). Technological lock: an integrative model of the economic and

strategic elements driving technology success and failure

Schilling, M. A. (2002). Technology success and failure in winner-take-all markets: the

impact



Essay regarding Advantages and Disadvantages of Modern Technology

Related

Category

News