Market-level information and the diffusion of competing technologies: An exploratory analysis of the LAN industry

Abstract

Market-level information diffused by print media may contribute to the legitimation of an emerging technology and thus influence the diffusion of competing technological standards.After analyzing more than 10 000 trade media abstracts from the Local Area Networks (LAN) industry published between 1981 and 2000, we found the presence of differential effects on the adoption of competing standards by two market-level information types: technology and product availability. The significance of these effects depends on the technology's order of entry and suggests that high-tech product managers should make strategic use of market-level information by appropriately focusing the content of their communications.

Information sharing strategies in a standards contest: The case of 2G wireless communication

“…Key attributes of such messages are their complexity and ambiguity. These attributes influence which adopters can process the information and the channels most effective at conveying it (Theoharakis et al, 2007). Hence, adoption may be driven more by what is communicated about a technology, and how, than by users' ability to directly evaluate it (Abrahamson & Rosenkopf, 1997;Geroski, 2000).…”

“…Research in this area has emphasized the importance of moving early to influence potential adopters' expectations (Lieberman & Montgomery, 1988;Farrell & Saloner, 1986), examines influence tactics they can use (Shapiro & Varian, 1999), and highlights the variety of communication channels through which technology advocates can influence adopters, including relationships and mass media (Dokko & Rosenkopf, 2004;Galeotti & Goyal, 2009;Theoharakis et al, 2007).…”

“…which media they use to convey their message. These media vary in how selectively they target a particular audience, whether an advocate can assist the interpretation of information shared or not, and in their capacity to transfer certain kinds of messages (Theoharakis et al, 2007). Information shared through public media, for instance, is available to a broad range of recipients, and its interpretation cannot be controlled, whereas private media, which involve some form of face-to-face communication, can be used selectively and the information shared in this way can be qualified and adapted to the idiosyncratic needs of individual recipients.…”

“…For example, Theoharakis et al (2007) distinguish market information, which is published and includes technical specifications and product announcements, from information that is conveyed via direct communications. While we expect a high degree of consistency between a firm's media choice and the content and target of its message, these relationships are not deterministic.…”

“…Finally, the sources include public commentary from industry analysts and experts outlining their opinions on a number of issues associated with the competing technologies and the industry conditions. As discussed previously, information can flow directly from technology advocates to potential adopters and to other parties who are able to exert some influence on adopters' technology choice via word-of-mouth, or through intermediaries such as newspaper editors and reporters, authors, and publishers, via a range of print media (Moorman, 1998;Fombrun & Shanley, 1990;Theoharakis et al, 2007). Our data set includes a wide variety of instances ranging from word-of-mouth through all types of print media instances of information sharing.…”