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The response of old technology incumbents to technological competition - Does the sailing ship effect exist?

Author

Listed:
  • Howells, John

    (Department of Organisation and Management, Aarhus School of Business)

Abstract

This article investigates whether firms react to a radical technological substitution threat by a deliberate acceleration of innovation in their existing technolgy - the "sailing ship effect". It has been argued that the effect is both significant and widespread and warrants a reexamination of our assumptions about the working of the competitive process (Rosenberg 1972). Reexamination of two cases thought to be exemplars of the effect shows that it existed in neither. It is argued that if the phenomenon occurs, it is likely to be rare.

Suggested Citation

  • 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.
    • Handle: RePEc:hhb:aardom:2000_001
    Note: Published after thorough revision with wp no. 2003-2 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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    Cited by:

    1. Howells, John, 2003. "Competition Derived From Innovation As A Substitution Threat," Working Papers 2003-2, University of Aarhus, Aarhus School of Business, Department of Management.
    2. Howells, John, 2000. "Technological competition, creative destruction and the competitive process," Working Papers 2000-4, University of Aarhus, Aarhus School of Business, Department of Management, revised 01 Nov 2003.

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