Cooperation and entry induction as an extension of technological rivalry

Bruce Kogut, Gordon Walker, Dong Jae Kim

Research output: Contribution to journalArticle

43 Citations (Scopus)

Abstract

This paper investigates how the structure of cooperation in an industry influences the dynamics of entry by start-up firms. Competition over technological dominance induces the entry of start-up firms into new subfields as incumbent firms seek to expand the consumer base using their technology. By cooperating, incumbent firms succeed to varying degrees in establishing their technologies as a dominant standard by building central positions in a cooperative network. Start-ups tend to enter, however, if there is reasonable certainty that a dominant technology has been established. We find strong support for the relationship between network centrality, as a measure of technological dominance of a standard, and the entry of start-up firms into the semiconductor industry.

Original languageEnglish
Pages (from-to)77-95
Number of pages19
JournalResearch Policy
Volume24
Issue number1
DOIs
Publication statusPublished - 1995 Jan

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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