On the strategic use of product modularity for market entry

Open Access
Authors
Publication date 02-2023
Journal Industrial and Corporate Change
Volume | Issue number 32 | 1
Pages (from-to) 155–180
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
Abstract We model the conditions under which firms should enter the market with modular products that support multiple standards instead of an integral product that supports a single standard. Product modularity enables firms to broaden their portfolios and increase their chances of investing in the “right” technologies early in a technology cycle. Entry with integral products instead occurs later in the cycle. We test the model’s predictions on a sample of the Local Area Network industry entrants during the 1990s.
Document type Article
Language English
Published at https://doi.org/10.1093/icc/dtac053
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