Planning for dominance: a strategic perspective on the emergence of a dominant design

Abstract

Researchers in technology and innovation, organization research, and product standardization in economics have noted that innovations may become the dominant designs in their product classes for reasons that may have little to do with design. The emergence process for dominant designs has typically been viewed as a black box process involving a sophisticated interaction of technological and non‐technological factors. This paper shifts the discussion to a strategic perspective. It argues that firms can frame the emergence process and can systematically manage elements of it in the pursuit of competitive advantage from innovation. An analytical framework is developed and discussed, with particular emphasis on the roles of certain external conditions, non‐technological forces, and complementary assets, as well as the implications for R&D strategists and for future research. Four distinctive examples illustrate different aspects of the framework's utility.

Implications of the Dominant Design in Electronic Initiation Systems in the South African Mining Industry

“…They exist when a product's value to the user increases as a function of its adoption by other consumers [19]. The higher the dependence on network externalities, the more important they become in the emergence of the dominant design, since the need for compatibility will be greater.…”

“…The innovation might still be in the fluid phase, and users will be unwilling to commit themselves to a particular design when the number of alternatives is too high [19]. For electronic initiation systems, the market might well perceive a high rate of technological change as companies commercialize their products and introduce them to the market.…”

“…If a company understands how and why an innovation becomes dominant, it can strategically plan its resource allocation and make informed decisions to appropriate the maximum benefit from its own and others' innovations. A framework is needed to understand the factors that influence the emergence of a dominant design and to provide a strategic approach [19]. The study of electronic initiation systems provides us with additional insights on issues that may play a role, not only in this particular case, but perhaps also in a wider context.…”

“…Economic factors that promote the emergence of a dominant design can be divided into demand-side and supply-side forces [19]. On the demand side, the mining industry wishes to minimize its search costs (e.g., assessing alternative products) and to increase purchasing efficiency, as well as to reduce its risk by lowering switching costs.…”

“…Lee et al defined a dominant design as "the distinctive way of providing a generic service or function that has achieved and maintained the highest level of market acceptance for a significant amount of time" [19]. A dominant design enforces or encourages standardization, leading to mass production and economies of scale [20].…”