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Doomed from the start: what is the value of selecting a future dominant design?

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  • Linda F. Tegarden
  • Donald E. Hatfield
  • Ann E. Echols

Abstract

This study investigates how important it is for a firm to select what turns out to be a dominant design in a technology‐driven industry. Using the personal computer industry as a case study, this research shows that firms are not doomed when their entry design choices turn out to be ‘wrong.’ For early entrants, we found that switching to the dominant design is associated with increased chances of survival and market share. Contrary to our expectations, we found that even later entrants that switched to the dominant design also enjoyed higher survival rates and greater market position. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Linda F. Tegarden & Donald E. Hatfield & Ann E. Echols, 1999. "Doomed from the start: what is the value of selecting a future dominant design?," Strategic Management Journal, Wiley Blackwell, vol. 20(6), pages 495-518, June.
    • Handle: RePEc:bla:stratm:v:20:y:1999:i:6:p:495-518
    DOI: 10.1002/(SICI)1097-0266(199906)20:63.0.CO;2-M
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    Cited by:

    1. Coeurderoy, Regis & Durand, Rodolphe, 2004. "Leveraging the advantage of early entry: proprietary technologies versus cost leadership," Journal of Business Research, Elsevier, vol. 57(6), pages 583-590, June.
    2. Suk Choi & Christopher Williams, 2014. "The impact of innovation intensity, scope, and spillovers on sales growth in Chinese firms," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 25-46, March.
    3. Chaturvedi, Tuhin & Prescott, John E., 2020. "Dynamic Fit In An Era Of Ferment: Product Design Realignment And The Survival-Enhancing Role Of Alliances And Acquisitions," Research Policy, Elsevier, vol. 49(6).
    4. Frank Borowicz & Ewald Scherm, 2001. "Standardisierungsstrategien: Eine erweiterte Betrachtung des Wettbewerbs auf Netzeffektmärkten," Schmalenbach Journal of Business Research, Springer, vol. 53(4), pages 391-416, June.
    5. Sillanpää, Antti & Laamanen, Tomi, 2009. "Positive and negative feedback effects in competition for dominance of network business systems," Research Policy, Elsevier, vol. 38(5), pages 871-884, June.
    6. Gautam Ahuja & Curba Morris Lampert & Vivek Tandon, 2014. "Paradigm-Changing vs. Paradigm-Deepening Innovation: How Firm Scope Influences Firm Technological Response to Shocks," Organization Science, INFORMS, vol. 25(3), pages 653-669, June.
    7. Anna Cabigiosu, 2018. "When do modular dominant designs emerge? A theoretical framework," Working Papers 05, Department of Management, Università Ca' Foscari Venezia.
    8. Cecere, Grazia & Corrocher, Nicoletta & Battaglia, Riccardo David, 2015. "Innovation and competition in the smartphone industry: Is there a dominant design?," Telecommunications Policy, Elsevier, vol. 39(3), pages 162-175.
    9. Ewald Scherm & Christian Maaß, 2006. "Zum Stellenwert der Netzwerkökonomik in der Strategie-/Marketingforschung —Eine Analyse empirischer Untersuchungen," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 17(1), pages 27-46, March.
    10. Suarez, Fernando F., 2004. "Battles for technological dominance: an integrative framework," Research Policy, Elsevier, vol. 33(2), pages 271-286, March.
    11. Cappetta, Rossella & Cillo, Paola & Ponti, Anna, 2006. "Convergent designs in fine fashion: An evolutionary model for stylistic innovation," Research Policy, Elsevier, vol. 35(9), pages 1273-1290, November.
    12. Peng, Yu-Shu & Liang, I-Chung, 2016. "A dynamic framework for competitor identification: A neglecting role of dominant design," Journal of Business Research, Elsevier, vol. 69(5), pages 1898-1903.
    13. Gilbert, Brett Anitra & McDougall, Patricia P. & Audretsch, David B., 2008. "Clusters, knowledge spillovers and new venture performance: An empirical examination," Journal of Business Venturing, Elsevier, vol. 23(4), pages 405-422, July.
    14. Puay Khoon Toh & Taekyu Kim, 2013. "Why Put All Your Eggs in One Basket? A Competition-Based View of How Technological Uncertainty Affects a Firm’s Technological Specialization," Organization Science, INFORMS, vol. 24(4), pages 1214-1236, August.
    15. Nicholas Argyres & Lyda Bigelow, 2007. "Does Transaction Misalignment Matter for Firm Survival at All Stages of the Industry Life Cycle?," Management Science, INFORMS, vol. 53(8), pages 1332-1344, August.
    16. Narayanan, V.K. & Chen, Tianxu, 2012. "Research on technology standards: Accomplishment and challenges," Research Policy, Elsevier, vol. 41(8), pages 1375-1406.
    17. Berg, S. & Wustmans, M. & Bröring, S., 2019. "Identifying first signals of emerging dominance in a technological innovation system: A novel approach based on patents," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 706-722.
    18. de Vries, H.J. & de Ruijter, J.P.M. & Argam, N., 2009. "Dominant Design or Multiple Designs: The Flash Memory Card Case," ERIM Report Series Research in Management ERS-2009-032-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    19. Show-Ling Jang & Shihmin Lo & Wen Hao Chang, 2009. "How do latecomers catch up with forerunners? Analysis of patents and patent citations in the field of flat panel display technologies," Scientometrics, Springer;Akadémiai Kiadó, vol. 79(3), pages 563-591, June.
    20. Majocchi, Antonio & Presutti, Manuela, 2009. "Industrial clusters, entrepreneurial culture and the social environment: The effects on FDI distribution," International Business Review, Elsevier, vol. 18(1), pages 76-88, February.
    21. April M. Franco & MB Sarkar & Rajshree Agarwal & Raj Echambadi, 2009. "Swift and Smart: The Moderating Effects of Technological Capabilities on the Market Pioneering-Firm Survival Relationship," Management Science, INFORMS, vol. 55(11), pages 1842-1860, November.
    22. Dongwook Kim & Sungbum Kim, 2017. "The Role of Mobile Technology in Tourism: Patents, Articles, News, and Mobile Tour App Reviews," Sustainability, MDPI, vol. 9(11), pages 1-45, November.

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