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




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


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.


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

L24, M10, O32, O33


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










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...

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