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Component Sharing Across Product Categories Leads to Functional Diversification: Evidence from the Japanese Digital Products Market

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  • MIURA, Sayako
  • 三浦, 紗綾子

Abstract

This study focuses on component sharing across product categories, in contrast to earlier work which examined component sharing within a specific category. Cross-category component sharing creates the potential for diversified product functionality by transferring new knowledge between categories, in addition to streamlining development, as previously noted. Evidence for this proposal is collected from the Japanese digital audio-visual products market in the late 2000s. Panasonic not only shared software modules and the design of LSI among products in the same category, but also shared them among televisions, DVD recorders, and cellphones. Its competitors, Sony and Sharp, used shared software and the design of LSI only within product category. Panasonic products were functionally more advanced than those of Sony and Sharp. This study revealed two types of functionality diversification: simple function diversification and linked operations.

Suggested Citation

  • MIURA, Sayako & 三浦, 紗綾子, 2014. "Component Sharing Across Product Categories Leads to Functional Diversification: Evidence from the Japanese Digital Products Market," Working Paper Series 188, Center for Japanese Business Studies (HJBS), Graduate School of Commerce and Management Hitotsubashi University.
    • Handle: RePEc:hit:hjbswp:188
    Note: 『Asiatische Studien-Études Asiatiques』 70.1 (2016): 75-88 掲載のため、論文データ（PDF）を取り下げ。[2016/10/25], Withdrawn due to publication in "『Asiatische Studien-Études Asiatiques』 70.1 (2016): 75-88 ". [Oct. 25, 2016]
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