Platform Leaders and Complementors' Strategic Management of Standards (original) (raw)

Standardization Strategies and Their Impact on Partners' Relationships in Complex Product and Systems

International Journal of IT Standards and Standardization Research, 2014

In this contribution, the authors investigate the way partners involved in Complex Products and Systems (CoPS) development manage local standards. In particular, this paper analyses how this management impacts the relations between partners through their roles of leader and complementor within platforms. The results are based on a qualitative case study in the launch vehicle segment of the space sector, especially the development of the Ariane 5 and Vega European space launchers. First, the authors find that standards management reveals the firm's position in a platform as a leader or a complementor. Second, it is shown that standards can be a way for complementors to build new system skills by collaborating with platform leaders. Along with skill building, they allow a firm to challenge the dominant position of the platform leader. Third, the authors show that firms use local standards combined with alliance strategies to manage competitive tensions. Then, the paper discusses l...

Exit, Voice and Loyalty: Strategic Behavior in Standards Development Organizations

SSRN Electronic Journal

Baron and two anonymous reviewers at the EURAS conference for their insightful comments. For its research on competition, standardization, and innovation, TILEC has received funding from Qualcomm Inc., which is gratefully acknowledged. The research on which this article is based was conducted in accordance with the rules set out in the Royal Dutch Academy of Sciences (KNAW) Declaration of Scientific Independence.

Social Shaping & Standardization: A Case Study from Auto Industry

2005

Inter-organizational collaboration requires systems interoperability which is not possible in the absence of common standards. However, empirical research has shown that Information and Communication Technology (ICT) standards can be a major barrier in the progress of Information Technology (IT)-enabled inter-organizational collaboration . Though often portrayed as a narrow technical matter, standard setting is a complex social process, shaped by an array of factors and representing embodiments of social relationships between the actors. This paper approaches standardization from a Social Shaping of Technology (SST) perspective. The paper explores the characteristics and factors that shape the development and implementation of a standard in the case of a portal implementation in the automotive industry.

Social Shaping & Standardization: A Case Study from Auto Industry

Proceedings of the 38th Annual Hawaii International Conference on System Sciences, 2005

Inter-organizational collaboration requires systems interoperability which is not possible in the absence of common standards. However, empirical research has shown that Information and Communication Technology (ICT) standards can be a major barrier in the progress of Information Technology (IT)-enabled inter-organizational collaboration . Though often portrayed as a narrow technical matter, standard setting is a complex social process, shaped by an array of factors and representing embodiments of social relationships between the actors. This paper approaches standardization from a Social Shaping of Technology (SST) perspective. The paper explores the characteristics and factors that shape the development and implementation of a standard in the case of a portal implementation in the automotive industry.

Standards as change agents in the information technology market

Computer Standards & Interfaces, 1991

Bonino. M.J. and M.B. Spring, Standards as change agents in the information technology market. Compuler Standards & Interfaces 12 (1991) 97-107. Standards have historically evolved from the codification of existing practices that had achieved market dominance. This paper reviews the evolution of standards and the standardization efforts in the information technology industry. Classificatory, descriptive, and explanatory models of the standardization process are reviewed. A model is proposed that classifies standards in the broad categories of reference, design, and implementation standards and suggests that reference standards might better be understood in terms of their role in shaping future developments. The model further classifies standards in terms of the computational process they accommodate and the user function they perform providing a broad framework for compatibility standards in the information technology arena.

The standards development process: a view from political theory

StandardView, 1993

The process in use today for developing voluntary consensus standards is often criticized for its slowness and inefficiency. This paper presents a model of the process and examines some possible alternatives to the present process and their consequences. TMsanalyaisisbased onsomeclassical results from political theory and group dacislon-making theory. Some simple applications of game theory to the standard development process are also discussed. ith the emergence of {{nticip~{t{~~:i standards (first discussed by Cargill [19891), new issues have come to the forefront in standardization. Anticipatory standards typically require short development times to be useful in a market characterized by short product life cycles, and they require committees to make choices based on scant information on technical feasibility. These alternatives presented to the committees originate in a wide variety of firms, and represent significant changes from the "traditional" mode of standards development, where standards were based on technologies tested in the marketplace and brought by a relatively few firms. In this article we examine the consequences of this change based on a qualitative application of political and game theory. The change can be traced to the divestiture of AT&T in 1984 and the erosion of IBM's market power, particularly in the low-end market (e.g., personal computers, minicomputers, and workstations). prior to the mid-1980s, these two firms could dictate industry standards by virtue of their marketplace dominance. Since then, a need for more pluralism has been successfully demanded for market segments where compatibility is necessary. The existing standards committees were the natural forum to express these pluralistic notions and to develop alternatives to the defacto standards of the dominant players. Increasingly, manufacturers recognized that developing standards in advance of the market enhanced market stability and benefits during the life-cycle of the product, Standards committees therefore became as much a fomm for determining the strategic direction of the IT industry as a mechanism for developing product standards [Bonino and Spring, 19901. 1Ã significant body of work has arisen in understanding standardization, particularly in recent years. Much

Winning the standards race

European Management Journal, 1999

In markets that have forces encouraging the adoption of a dominant design, the size of a technology's installed base and the availability of complementary goods may be the most important factors determining its success or failure. This article examines the path dependent nature of technology trajectories, and the self-reinforcing effects of installed base and complementary goods. The article posits that firms can greatly influence their installed base and the availability of complementary goods through their distribution, alliance and marketing strategies. Both theory and examples are used to demonstrate how firms can manage the dynamics of technology selection in their favor.

Standard-setting processes: evidence from two case studies

R and D Management, 2002

In many hi-tech sectors one of the most important dimensions of competition is standardisation. This is particularly true in modular markets (i.e. markets characterised by the existence of modular architectures) and in network markets (i.e. markets where users would like to buy products compatible with those bought by others). Different processes may lead to the standard-setting. Sometimes there are fierce standardisation wars whereas in other cases competitors are able to agree on a common standard before the introduction of the technology on the market. In this paper we endeavour to provide an interpretative framework of the standardisation process and validate such a framework through an in-depth analysis of two case studies in a typical network market (the multimedia sector): the case of the Modem 56k and the case of the Information Appliances-Enhanced TV.

The Effects of Coordination Mechanisms and Embeddedness on The Adoption of Open Standards

2018

Organizations today face great challenges from the unpredictable, globalized and competitive business environment. One of the ways that organizations achieve competitive advantages is by the adoption and diffusion of open standard inter-organizational systems (OSIOS). Despite the benefits that are promised by the adoption of OSIOS, its adoption has slowed down and there are increased cases of failure in OSIOS adoptions. In trying to explain this phenomenon, this study examines various factors relating to the social network theory and coordination theory with the adoption of OSIOS. A survey questionnaire was administered and data was collected from 101 companies in China. Using partial least square analysis, we found that extent of coordination mechanism use and tie strength are positively and significantly associated with the adoption of OSIOS. Results and implications are briefly discussed.

Organisational assimilation of vertical standards: exploring the interplay of technology destiny, firm-level factors and network effects

International Journal of Services and Standards, 2012

Vertical standards define industry-specific vocabularies, formalise business processes and provide data portability across systems by embedding semantic information in data payloads. Despite their potential, their assimilation across industries has been uneven. We consider the effect of a vertical standard's winning or non-winning industry position on assimilation rates within organisations. We posit assimilation will be influenced by a firm's ability to overcome value-realisation and implementation barriers, and by community-level effects such as business partner pressures and orphaning risks. We argue these effects are moderated by the winning or non-winning position of vertical standards in an industry.