Doomed from the start: what is the value of selecting a future dominant design?

Doomed from the start: what is the value of selecting a future dominant design? This study investigates how important it is for a firm to select what turns out to be a dominant design in a technology‐driven industry. Using the personal computer industry as a case study, this research shows that firms are not doomed when their entry design choices turn out to be ‘wrong.’ For early entrants, we found that switching to the dominant design is associated with increased chances of survival and market share. Contrary to our expectations, we found that even later entrants that switched to the dominant design also enjoyed higher survival rates and greater market position. Copyright © 1999 John Wiley & Sons, Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Doomed from the start: what is the value of selecting a future dominant design?

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Publisher
Wiley
Copyright
Copyright © 1999 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/(SICI)1097-0266(199906)20:6<495::AID-SMJ43>3.0.CO;2-M
Publisher site
See Article on Publisher Site

Abstract

This study investigates how important it is for a firm to select what turns out to be a dominant design in a technology‐driven industry. Using the personal computer industry as a case study, this research shows that firms are not doomed when their entry design choices turn out to be ‘wrong.’ For early entrants, we found that switching to the dominant design is associated with increased chances of survival and market share. Contrary to our expectations, we found that even later entrants that switched to the dominant design also enjoyed higher survival rates and greater market position. Copyright © 1999 John Wiley & Sons, Ltd.

Journal

Strategic Management JournalWiley

Published: Jun 1, 1999

References

  • Dual clocks: Entry order influences on incumbent and newcomer market share and survival when specialized assets retain their value
    Mitchell, Mitchell
  • Dominant designs and the survival of firms
    Suarez, Suarez; Utterback, Utterback
  • Dynamics of organizational communities and technological bandwagons: An empirical investigation of community evolution in the microprocessor market
    Wade, Wade

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