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Multiple standards and critical masses, and the formation of new industries The case of the Japanese mobile internet

Multiple standards and critical masses, and the formation of new industries The case of the... Purpose – The purpose of this paper is to analyze standard setting and how a critical mass of users emerged in an industry in which multiple interface standards co‐exist and a critical mass of users was created multiple times. Design/methodology/approach – This paper is based on research conducted for almost ten years using the case study approach. Data were gathered through more than 100 interviews with Japanese firms and through analyses of published sources. Findings – The paper finds that growth in mobile internet services required agreements on multiple interface standards where some of these interface standards exhibited interdependencies and thus required integral design, while others have been built on top of these “basic” interface standards. Agreements on the former interface standards enable basic data connections between phones, services, and content and this required integral design. The latter interface standards connect the mobile phone with content and applications from other industries (e.g. music, video, publishing, broadcasting, and payment) and each critical mass of phones, services, and content for them partly builds from previously created critical masses. Research limitations/implications – The research focused on a single industry in a single country. Practical implications – This paper helps scholars and practitioners better understand how interface standards and critical masses for them emerge. Originality/value – This is the first paper to analyze multiple interface standards in a single industry and the emergence of a critical mass of users or complementary products for these standards. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Innovation Management Emerald Publishing

Multiple standards and critical masses, and the formation of new industries The case of the Japanese mobile internet

European Journal of Innovation Management , Volume 15 (1): 23 – Jan 20, 2012

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References (93)

Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
1460-1060
DOI
10.1108/14601061211192816
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to analyze standard setting and how a critical mass of users emerged in an industry in which multiple interface standards co‐exist and a critical mass of users was created multiple times. Design/methodology/approach – This paper is based on research conducted for almost ten years using the case study approach. Data were gathered through more than 100 interviews with Japanese firms and through analyses of published sources. Findings – The paper finds that growth in mobile internet services required agreements on multiple interface standards where some of these interface standards exhibited interdependencies and thus required integral design, while others have been built on top of these “basic” interface standards. Agreements on the former interface standards enable basic data connections between phones, services, and content and this required integral design. The latter interface standards connect the mobile phone with content and applications from other industries (e.g. music, video, publishing, broadcasting, and payment) and each critical mass of phones, services, and content for them partly builds from previously created critical masses. Research limitations/implications – The research focused on a single industry in a single country. Practical implications – This paper helps scholars and practitioners better understand how interface standards and critical masses for them emerge. Originality/value – This is the first paper to analyze multiple interface standards in a single industry and the emergence of a critical mass of users or complementary products for these standards.

Journal

European Journal of Innovation ManagementEmerald Publishing

Published: Jan 20, 2012

Keywords: Interface standards; Network effects; Critical mass; Mobile phones; Mobile communication systems; Internet; Japan

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