IDEAS home Printed from https://ideas.repec.org/p/ems/eureri/16039.html
   My bibliography  Save this paper

Dominant Design or Multiple Designs: The Flash Memory Card Case

Author

Listed:
  • de Vries, H.J.
  • de Ruijter, J.P.M.
  • Argam, N.

Abstract

Literature suggests that in battles between competing designs, ultimately one design will emerge as dominant to the detriment of the others. Various factors and forces have been identified to explain this phenomenon. Yet, sometimes no dominant design emerges at all and multiple competing designs coexist in the market.. The Flash Memory Card Industry provides an example of this. In this study, we use this example as a case to investigate the circumstances under which an industry has a tendency toward multiple designs. The case shows that a combination of factors may result in multiple designs and we argue that such a combination of factors will increasingly also apply in other cases.

Suggested Citation

  • de Vries, H.J. & de Ruijter, J.P.M. & Argam, N., 2009. "Dominant Design or Multiple Designs: The Flash Memory Card Case," ERIM Report Series Research in Management ERS-2009-032-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  • Handle: RePEc:ems:eureri:16039
    as

    Download full text from publisher

    File URL: https://repub.eur.nl/pub/16039/ERS-2009-032-LIS.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. König, Wolfgang & Weitzel, Tim & Buxmann, Peter & Westarp, Falk von, 2000. "The Standardization Problem in Networks : A General Framework," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 103232, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. Joseph Farrell & Garth Saloner, 1985. "Standardization, Compatibility, and Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 70-83, Spring.
    4. Frenken, Koen & Saviotti, Paolo P. & Trommetter, Michel, 1999. "Variety and niche creation in aircraft, helicopters, motorcycles and microcomputers," Research Policy, Elsevier, vol. 28(5), pages 469-488, June.
    5. Baake, Pio & Boom, Anette, 2001. "Vertical product differentiation, network externalities, and compatibility decisions," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 267-284, January.
    6. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    7. Suarez, Fernando F., 2004. "Battles for technological dominance: an integrative framework," Research Policy, Elsevier, vol. 33(2), pages 271-286, March.
    8. S. J. Liebowitz & Stephen E. Margolis, 1994. "Network Externality: An Uncommon Tragedy," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 133-150, Spring.
    9. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    10. Linda F. Tegarden & Donald E. Hatfield & Ann E. Echols, 1999. "Doomed from the start: what is the value of selecting a future dominant design?," Strategic Management Journal, Wiley Blackwell, vol. 20(6), pages 495-518, June.
    11. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 783-832.
    12. Schilling, Melissa, 1999. "Winning the standards race: : Building installed base and the availability of complementary goods," European Management Journal, Elsevier, vol. 17(3), pages 265-274, June.
    13. König, Wolfgang & Weitzel, Tim & Buxmann, Peter & von Westarp, Falk, 2000. "The Standardization Problem in Networks : A General Framework," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36543, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. Fernando F. Suárez & James M. Utterback, 1995. "Dominant designs and the survival of firms," Strategic Management Journal, Wiley Blackwell, vol. 16(6), pages 415-430.
    15. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    16. Knut Blind, 2004. "The Economics of Standards," Books, Edward Elgar Publishing, number 3392.
    17. Bekkers, Rudi & Verspagen, Bart & Smits, Jan, 0. "Intellectual property rights and standardization: the case of GSM," Telecommunications Policy, Elsevier, vol. 26(3-4), pages 171-188, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cecere, Grazia & Corrocher, Nicoletta & Battaglia, Riccardo David, 2015. "Innovation and competition in the smartphone industry: Is there a dominant design?," Telecommunications Policy, Elsevier, vol. 39(3), pages 162-175.
    2. van de Kaa, Geerten & de Vries, Henk J., 2015. "Factors for winning format battles: A comparative case study," Technological Forecasting and Social Change, Elsevier, vol. 91(C), pages 222-235.
    3. Narayanan, V.K. & Chen, Tianxu, 2012. "Research on technology standards: Accomplishment and challenges," Research Policy, Elsevier, vol. 41(8), pages 1375-1406.
    4. Suarez, Fernando F., 2004. "Battles for technological dominance: an integrative framework," Research Policy, Elsevier, vol. 33(2), pages 271-286, March.
    5. Papachristos, George, 2017. "Diversity in technology competition: The link between platforms and sociotechnical transitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 291-306.
    6. Frank Borowicz & Ewald Scherm, 2001. "Standardisierungsstrategien: Eine erweiterte Betrachtung des Wettbewerbs auf Netzeffektmärkten," Schmalenbach Journal of Business Research, Springer, vol. 53(4), pages 391-416, June.
    7. Sillanpää, Antti & Laamanen, Tomi, 2009. "Positive and negative feedback effects in competition for dominance of network business systems," Research Policy, Elsevier, vol. 38(5), pages 871-884, June.
    8. Schade, Sven & Buxmann, Peter, 2005. "A Prototype to Analyse and Support Standardization Decisions," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35795, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. van de Kaa, G. & Fens, T. & Rezaei, J. & Kaynak, D. & Hatun, Z. & Tsilimeni-Archangelidi, A., 2019. "Realizing smart meter connectivity: Analyzing the competing technologies Power line communication, mobile telephony, and radio frequency using the best worst method," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 320-327.
    10. Oz Shy, 2011. "A Short Survey of Network Economics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(2), pages 119-149, March.
    11. van de Kaa, Geerten & Rezaei, Jafar & Kamp, Linda & de Winter, Allard, 2014. "Photovoltaic technology selection: A fuzzy MCDM approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 662-670.
    12. Paul Windrum, 2003. "Unlocking a Lock-in: Towards a Model of Technological Succession," Chapters, in: Pier Paolo Saviotti (ed.), Applied Evolutionary Economics, chapter 11, Edward Elgar Publishing.
    13. van de Kaa, Geerten & Janssen, Marijn & Rezaei, Jafar, 2018. "Standards battles for business-to-government data exchange: Identifying success factors for standard dominance using the Best Worst Method," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 182-189.
    14. Johansson, Magnus & Kärreman, Matts & Foukaki, Amalia, 2019. "Research and development resources, coopetitive performance and cooperation: The case of standardization in 3GPP, 2004–2013," Technovation, Elsevier, vol. 88(C).
    15. Camerani, Roberto & Corrocher, Nicoletta & Fontana, Roberto, 2020. "It's never too late (to enter)… till it is! Firms’ entry and exit in the digital audio player industry," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    16. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    17. Vialle, Pierre & Song, Junjie & Zhang, Jian, 2012. "Competing with dominant global standards in a catching-up context. The case of mobile standards in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 832-846.
    18. Howell, Bronwyn, 2006. "Unveiling 'Invisible Hands': Two-Sided Platforms in Health Care Markets," Working Paper Series 3841, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    19. Najda-Janoszka, Marta, 2017. "Industry Transition - Challenges for Value Capture," MPRA Paper 81919, University Library of Munich, Germany.
    20. van de Kaa, Geerten & Papachristos, George & de Bruijn, Hans, 2019. "The governance of platform development processes: A metaphor and a simulation model," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 190-203.

    More about this item

    Keywords

    dominant design; flash memory cards; multiple designs; standards wars;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ems:eureri:16039. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePub (email available below). General contact details of provider: https://edirc.repec.org/data/erimanl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.