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Technological competition, strategies of the firms and the choice of the first users: the case of road guidance technologies

Author

Listed:
  • Vincent Mangematin

    (GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique, MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

  • Michel Callon

    (CSI i3 - Centre de Sociologie de l'Innovation i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

Based on an in-depth study of two different road guidance technologies, both under increasing returns to adoption, this paper is an attempt to elucidate the strategic game played by the producers and the first users before the introduction of the technologies onto the market. It shows that it is possible to endogenize the decisions made by the first users (who are chosen by the supplier) as much as those of the suppliers when they choose the first users. When identifying first users, firms evaluate their capacity to influence other potential adopters, a capacity which depends on their position in the social networks to which they belong. In order to enrol the first users, the producers of a technology develop various strategies, including standardization in voluntary standardization committees, pre-announcement, scientific legitimizing and even technological transformation of the product itself. Indeed, the first users who seem strategically vital by the sponsor of the first system are not necessarily the same as those targeted by the sponsors of the second technology. Thus, the degree of substitutability itself appears as an endogenous variable. This analysis provides a new basis for understanding technological competition and completes economic modelling of the competition.

Suggested Citation

  • Vincent Mangematin & Michel Callon, 1995. "Technological competition, strategies of the firms and the choice of the first users: the case of road guidance technologies," Post-Print hal-00422545, HAL.
  • Handle: RePEc:hal:journl:hal-00422545
    DOI: 10.1016/0048-7333(93)00776-P
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    Citations

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    Cited by:

    1. Julien Chicot & Mireille Matt, 2015. "Public procurement of innovation: A review of rationales, instruments and design," Post-Print hal-02087762, HAL.
    2. van Wegberg, M.J., 2003. "The grand coalition versus competing coalitions: trade-offs in how to standardize," Research Memorandum 021, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    3. Vercoulen, F. & van Wegberg, M.J., 1998. "Standard selection modes in dynamic, complex industries : creating hybrids between market selection and negotiated selection of standards," Research Memorandum 006, Maastricht University, Netherlands Institute of Business Organization and Strategy Research (NIBOR).
    4. Vanhaverbeke, W.P.M. & Torremans, H., 1998. "Organizational structure in process-based organizations," Research Memorandum 005, Maastricht University, Netherlands Institute of Business Organization and Strategy Research (NIBOR).
    5. Theoharakis, Vasilis & Vakratsas, Demetrios & Wong, Veronica, 2007. "Market-level information and the diffusion of competing technologies: An exploratory analysis of the LAN industry," Research Policy, Elsevier, vol. 36(5), pages 742-757, June.
    6. van Wegberg, M.J., 2003. "A note on network structure: functional relationships between network indicators," Research Memorandum 032, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    7. Matt, M. & Colinet, L. & Gaunand, A. & Joly, P.B., 2015. "A typology of impact pathways generated by a public agricultural research organization," Working Papers 2015-03, Grenoble Applied Economics Laboratory (GAEL).

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