Exploration and exploitation in the presence of network externalities

Management Science

Volumn 49, Issue 4, 2003, Pages 553-570

  Lee, Jongseok ^a,b   Lee, Jeho ^a   Lee, Habin ^c  

^a Korea Advanced Institute of Science and Technology (KAIST)   (South Korea)

^b Science and Technology Policy Institute (STEPI)   (South Korea)

^c PaiChai University   (South Korea)

Author keywords

Exploration and exploitation; Innovation; Network externalities; Technology

Indexed keywords

COMPUTER ARCHITECTURE; COMPUTER WORKSTATIONS; PERSONAL COMPUTERS; TECHNOLOGY TRANSFER;

INNOVATION; NETWORK EXTERNALITIES;

REDUCED INSTRUCTION SET COMPUTING;

EID: 0043205025     PISSN: 00251909     EISSN: None     Source Type: Journal    
DOI: 10.1287/mnsc.49.4.553.14417     Document Type: Article

References (50)

1. Anderson, P., M. L. Tushman. 1990. Technological discontinuities and dominant designs: A cyclical model of technological change. Admin. Sci. Quart. 35 604-633.
2. Argote, L., D. Epple. 1990. Learning curves in manufacturing. Sci. 247 920-924.
3. ____, S. L. Beckman, D. Epple. 1990. The persistence and transfer of learning in industrial settings. Management Sci. 36 140-154.
4. Arthur, W. B. 1987. Competing technologies: An overview. G. Dosi, ed. Technical Change and Economic Theory. Columbia University Press, New York, 590-607.
5. ____. 1989. Competing technologies, increasing returns, and lock-in by historical events. Econom. J. 99, 116-131.
6. ____. 1994. Increasing Returns and Path Dependence in the Economy. University of Michigan Press, Ann Arbor, MI.
7. ____. 1999. Complexity and the economy. Science 284 107-109.
8. Becker, G. S. 1998. Let the marketplace judge Microsoft. Business Week April 6 26.
9. Botticelli, P., D. Collis, G. Pisano. 1998. Intel corporation: 1968-1997. HBS Case No. 9-797-137, Harvard Business School, Boston, MA.
10. Christensen, C. M. 1993. The rigid disk drive industry: A history of commercial and technological turbulence. Bus. Hist. Rev. 67 531-588.
11. Cohen, W., D. Levinthal. 1989. Innovation and learning: The two faces of R&D. Econom. J. 99 569-596.
12. Cyert, R., J. G. March. 1963. A Behavioral Theory of the Firm. Prentice-Hall, Englewood Cliffs, NJ.
13. David, P. A., J. A. Bunn. 1988. The economics of gateway technologies and network evolution: Lesson from electricity supply history. Inform. Econom. Policy 3 165-202.
14. Epple, D., L. Argote, R. Devadas. 1991. Organizational learning curves: A method for investigating intra-plant transfer of knowledge acquired through learning by doing. Organ. Sci. 2 58-70.
15. Farrell, J., G. Saloner. 1986. Installed base and compatibility: innovation, product preannouncements, and predation. Amer. Econom. Rev. 76 940-955.
16. ____, ____. 1992. Converters, compatibility, and the control of interfaces. J. Indust. Econom. 40 9-35.
17. Garud, R., P. Karnøe. 2001. Path creation as a process of mindful deviation. R. Garud, P. Karnø, eds. Path Dependence and Creation. Lawrence Earlbaum Associates, Mahwah, NJ.
18. Grove, A. S. 1996. Only the Paranoid Survive. Currency Doubleday, New York.
19. Henderson, R.M., K.B. Clark. 1990. Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Admin. Sci. Quart. 35 9-30.
20. Holland, J. H. 1975. Adaptation in Natural and Artificial Systems. University of Michigan Press, Ann Arbor, MI.
21. ____. 1992. Genetic algorithms. Sci. Amer. (July) 66-72.
22. Johnson, M. L., S. Kotz. 1970. Continuous Univariate Distributions-2. Houghton Mifflin Company New York.
23. Katz, M. L., C. Shapiro. 1985. Network externalities, competition, and compatibility. Amer. Econom. Rev. 75 424-440.
24. ____, ____. 1992. Product introduction with network externalities. J. Indust. Econom. 40 55-83.
25. ____, ____. 1994. Systems competition and network effects. J. Econom. Perspectives 8 93-115.
26. Khazam, J., D. C. Mowery. 1996. Tails that wag dogs: The Influence of software-based "network externalities" on the creation of dominant designs in RISC technologies. D. C. Mowery, ed. The International Computer Software Industry: A Comparative Study of Industry Evolution and Structure. Oxford University Press, New York, 86-103.
27. Kristiansen, E. C. 1998. R&D in the presence of network externalities: Timing and compatibility. RAND J. Econom. 29 531-547.
28. Lant, T. K., S. J. Mezias. 1990. Managing discontinuous change: A simulation study of organizational learning and entrepreneurship. Strategic Management J. 11 147-179.
29. ____, ____. 1992. An organizational learning model of convergence and reorientation. Organ. Sci. 3 47-71.
30. Lee, J. H., Y. U. Ryu. 2002. Exploration, exploitation, and adaptive rationality: The Neo-Schumpeterian perspective. Simulation Model. Practice Theory 10 297-320.
31. Levinthal, D. A., J. G. March. 1981. A model of adaptive organizational search. J. Econom. Behavior Organ. 2 307-333.
32. ____, ____. 1993. The myopia of learning. Strategic Management J. 14 95-112.
33. Levitt, B., J. G. March. 1988. Organization learning. Ann. Rev. Sociology 14 319-340.
34. Liebowitz, S. J., S. E. Margolis. 1990. The fable of the keys. J. Law Econom. 22 1-26.
35. ____, ____. 1995. Path dependence, lock-in, and history. J. Law, Econom. and Organ. 11 205-226.
36. March, J. G. 1991. Exploration and exploitation in organizational learning. Organ. Sci. 2 71-87.
37. Mezias, S. J., A. B. Eisner. 1997. Competition, imitation, and innovation: An organizational learning approach. Adv. in Strategic Management 14 261-294.
38. Mezias, S. J., M. A. Glynn. 1993. The three faces of corporate renewal: Institution, revolution, and evolution. Strategic Management J. 14 77-101.
39. Moore, G. A. 1991. Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers. HarperBusiness, New York.
40. ____. 1995. Inside the Tornado: Marketing Strategies from Silicon Valley's Cutting Edge. HarperBusiness, New York.
41. Nelson, R. R., S. G. Winter. 1977. Simulation of Schumpeterian competition. Amer. Econom. Rev. Proc. 67 271-276.
42. ____, ____. 1978. Force generating and limiting concentration under Schumpeterian competition. Bell J. Econom. 9 524-548.
43. ____, ____. 1982. An Evolutionary Theory of Economic Change. Harvard University Press, Cambridge, MA.
44. Rogers, E. M. 1995. Diffusion of Innovations. The Free Prees, New York.
45. Shapiro, C., H. R. Varian. 1999. Information Rule: A Strategic Guide to the Network Economy. Harvard Business School Press, Boston, MA.
46. Steffens, J. 1994. New Games: Strategic Competition in the PC Revolution. Pergamon Press, Seoul, South Korea.
47. Tripsas, M. 1997. Unraveling the process of creative destruction: Complementary assets and incumbent survival in the typesetter industry. Strategic Management J. 18 119-142.
48. Utterback, J. M. 1994. Mastering the Dynamics of Innovation: How Companies Can Seize Opportunities in the Face of Technological Change. Harvard Business School Press, Boston, MA.
49. Winter, S. G. 1971. Satisficing, selection, and the innovating remnant. Quart. J. Econom. 85 237-261.
50. Yoffie, D. B. 1994. Strategic Management in Information Technology. Prentice-Hall, Englewood Cliffs, NJ, 82-91.