Article
Strategic Maneuvering of Technological Factors and Emergence of De Facto Standards
Journal of Small Business Strategy
(2014)
Abstract
The emergence of a de facto standard in a product class depends on technological,
competitive, and market factors. The question is whether or not a firm can strategically
manipulate various factors to help determine the winner. To address this question, three
factors, technological superiority, openness, and compatibility, are examined with regard to
their influence on the emergence of de facto standards. Hypotheses are tested with an analysis
of 78 historical cases in 39 market categories. Results indicate that in setting de facto
standards, technological superiority is uniformly important, suggesting the logic of
technological determinism. Moreover, results also suggest that the influence of technological
openness may be contingent on the nature of competition. Thus, strategic managers may need
to incorporate a contingency perspective into the selection of an appropriate strategy.
Keywords
- competitive strategy,
- de facto standard,
- network externalities,
- open architecture
Publication Date
January 1, 2014
Citation Information
Lee J. Zane, Hideo Yamada and Susumu Sam Kurokawa. "Strategic Maneuvering of Technological Factors and Emergence of De Facto Standards" Journal of Small Business Strategy Vol. 24 Iss. 2 (2014) p. 91 - 113 Available at: http://works.bepress.com/lee-zane/4/