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Collaboration in the Shadow of the Technology Frontier: Evidence from the Flat Panel Display Industry

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  • I. Kim Wang
  • Hsiao‐shan Yang
  • Douglas J. Miller

Abstract

The literature on competition through innovation tends to emphasize the benefits of technological leadership. However, we explain why a capable firm might prefer to shadow the technology leader—remaining slightly behind rather than competing directly at the frontier. On the basis of a formal model and the competitive dynamics literature, we propose that the more benefits a firm gains from collaboration with a technological leader through licensing and supply agreements, the more likely the firm is to take a shadowing position. Our hypotheses, particularly regarding licensing from a technological leader, receive support from a large sample in the flat panel display industry. Copyright © 2014 John Wiley & Sons, Ltd.

Suggested Citation

  • I. Kim Wang & Hsiao‐shan Yang & Douglas J. Miller, 2015. "Collaboration in the Shadow of the Technology Frontier: Evidence from the Flat Panel Display Industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 36(7), pages 456-469, October.
    • Handle: RePEc:wly:mgtdec:v:36:y:2015:i:7:p:456-469
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    Cited by:

    1. Wang, I. Kim & Seidle, Russell, 2017. "The degree of technological innovation: A demand heterogeneity perspective," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 166-177.
    2. Kim Wang, 2017. "Technology Deployment By Late Movers," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-25, May.
    3. Wang, I. Kim & Qian, Lihong & Lehrer, Mark, 2017. "From technology race to technology marathon: A behavioral explanation of technology advancement," European Management Journal, Elsevier, vol. 35(2), pages 187-197.

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