Unveiling the Successful Process of Technological Transition : A Case Study of Matsushita Electric
Changing technological strategies requires serious management decisions because it essentially means withdrawing from an existing technology, in which the company has been successful, and shifting management resources to a new technology with a high degree of uncertainty. Most of existing research has focused on examples of failure, to shed light on the causes of failure. However, we will analyze in detail an example of a successful transition to a new technology. The subject of our analysis is the transition in technological strategies made by Matsushita Electric Group (MEG), a large corporate group representative of Japanese companies, at the time of its commercialization of plasma TVs. The purpose of this paper is to analyze in detail this transition process and to discover findings and insights for successful transition process from accumulated technology to new technology. Our analysis yields key conceptual contributions about technological transition from old to new technology as follows. Old and new technology can differ in their knowledge base. According to existing literature, when the knowledge base is radically different, incumbent firms have a difficulty adapting to the technological change. On the other hand, when the knowledge base is very similar, incumbent firms have no trouble adapting to the change. Beyond these established existing understandings, this paper argues that when the knowledge base is moderately different, managers can increase the likelihood of successful transition by implementing a set of organizational strategies. Among these strategies, a particularly insightful one is that through the parallel development process of both existing and new technologies, managers can eventually integrate the advantages of both technologies by implementing a flexible resource allocation mechanism to overcome the dichotomy between old and new.
|Date of creation:||Nov 2011|
|Contact details of provider:|| Postal: Kawauchi, Aoba-ku, Sendai 980-8476|
Web page: http://www.econ.tohoku.ac.jp/econ/english/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Miller, Roger, et al, 1995. "Innovation in Complex Systems Industries: The Case of Flight Simulation," Industrial and Corporate Change, Oxford University Press, vol. 4(2), pages 363-400.
- Ghemawat, Pankaj & Ricart, Joan E., 1993. "Organizational tension between static and dynamic efficiency, The," IESE Research Papers D/255, IESE Business School.
When requesting a correction, please mention this item's handle: RePEc:toh:tmarga:104. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tohoku University Library)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.