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Competition Derived From Innovation As A Substitution Threat

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Author Info
Howells, John () (Department of Organisation and Management, Aarhus School of Business)
Abstract

This paper is a review of the role of innovation as substitution threat. The interesting strategy for those facing what in retrospect proves to be full substitution is the strategy of ‘switch’ to the substituting technology. The context-dependent uncertainty involved in the switch decision is examined in three detailed cases; the nineteenth century alkali industry in England, IBM’s move into computer technology and the 1950s electronic valve manufacturers’ move into semiconductor transistors. The case material is used to introduce the problem competition policy has when faced with competition derived from innovation.

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Publisher Info
Paper provided by University of Aarhus, Aarhus School of Business, Department of Management in its series Working Papers with number 2003-2.

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Length: 42 pages
Date of creation: 01 Nov 2003
Date of revision:
Handle: RePEc:hhb:aardom:2003_002

Note: Published after thorough revision with wp no. 2000-1 as: The Response of Old Technology Incumbents to Technological Competition - does the Sailing Ship Effect Exist? Journal of Management Studies, 39, 7, 887-907, 2002
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Postal: The Aarhus School of Business, Fuglesangs Allé 4, DK-8210 Aarhus V, Denmark
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Related research
Keywords: Technological development; Innovation; Competition;

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  1. John Howells, 2002. "The Response of Old Technology Incumbents to Technological Competition - Does the Sailing Ship Effect Exist?," Journal of Management Studies, Blackwell Publishing, vol. 39(7), pages 887-906, November. [Downloadable!] (restricted)
  2. Howells, John, 2000. "The response of old technology incumbents to technological competition - Does the sailing ship effect exist?," Working Papers 2000-1, University of Aarhus, Aarhus School of Business, Department of Management. [Downloadable!]
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