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The effect of technological platforms on the global supply chain: a case study on Intel's platform business in the PC industry

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  • Hirofumi Tatsumoto
  • Koichi Ogawa

Abstract

The purpose of this paper is to investigate the effect of the technological platform on the global supply chain by examining its characteristics and diffusion mechanism. Using architectural analysis, we developed a case study on Intel's platform business in Taiwan in 1990s. It defines the characteristic of platforms as a separator of the technologies used in finished products into completely modular and integral technologies. It explains the difference in technology diffusion speed at a finished product level and a platform level, and shows the shift in production of finished products from developed countries to developing countries, while the platform remains in the developed country. The growth of platforms has destroyed the advantages of traditional firms based in developed countries and encouraged market entry by new firms based in developing countries.

Suggested Citation

  • Hirofumi Tatsumoto & Koichi Ogawa, 2009. "The effect of technological platforms on the global supply chain: a case study on Intel's platform business in the PC industry," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 5(6), pages 799-816.
    • Handle: RePEc:ids:ijsoma:v:5:y:2009:i:6:p:799-816
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