Strategies in network industries: the importance of inter-organisational networks, complementary goods, and commitment

Abstract

This paper focuses on technology battles that are fought in network industries. The literature primarily focuses on battles that have occurred in single industries. With the convergence of industries, products that originate from different industries can be connected in technological systems, and battles are fought over standards for these systems. In this paper, we focus on these types of battles and investigate which factors impact their outcome and how these factors are related to each other. We analyse two technology battles: for wireless home networking and for an e-purse technology. Our findings show that provided that the actors are committed to the success of the standard, size and diversity in the inter-organisational network increase the availability and variety of complementary goods which positively influence the installed base of the standard which then may lead to its dominance.

Keywords:

• standards
• technology battles
• strategies in network industries
• inter-organisational networks

Notes on contributors

Geerten van de Kaa is Assistant Professor of Strategy and Innovation at Delft University of Technology. He holds a Ph.D. from Rotterdam School of Management, Erasmus University. His research interests include platform wars for complex systems and responsible innovation. In 2011, he was a visiting scholar at Berlin University of Technology. He has published in high ranking international journals including Organization Studies, IEEE Transactions on Engineering Management, and Renewable and Sustainable Energy Reviews.

Henk J. de Vries is Associate Professor of Standardization at the Rotterdam School of Management, Erasmus University in Rotterdam. His education and research focus on standardisation from a business point of view. Since 1994, he has an appointment at the Erasmus University's School of Management and since 2004, he has been working full-time at this university. Henk is author of 250 publications on standardisation, including several books.

Jan van den Ende is a professor of technology and innovation management at Rotterdam School of Management, Erasmus University. He holds a PhD from Delft University of Technology. In his research, Jan van den Ende focuses on the management of the development process of new products and services. His current interests include idea generation, design management, and inter-firm NPD teams. Among others, Jan van den Ende published in the Journal of Management Studies, Harvard Business Review, Research Policy, and IEEE Transactions on Engineering Management.