Standard–setting processes: evidence from two case studies

Abstract

In many hi-tech sectors one of the most important dimensions of competition is standardisation. This is particularly true in modular markets (i.e. markets characterised by the existence of modular architectures) and in network markets (i.e. markets where users would like to buy products compatible with those bought by others). Different processes may lead to the standard-setting. Sometimes there are fierce standardisation wars whereas in other cases competitors are able to agree on a common standard before the introduction of the technology on the market. In this paper we endeavour to provide an interpretative framework of the standardisation process and validate such a framework through an in-depth analysis of two case studies in a typical network market (the multimedia sector): the case of the Modem 56k and the case of the Information Appliances-Enhanced TV.The two case studies offer some evidence of the standardisation process and of the growing importance of super-partes organisations (Standard Development Organisations) in the mediation process between different interests and technologies to impose a common standard on the market.

Mobile telecommunication standardization in Japan, China, the United States, and Europe: a comparison of regulatory and industrial regimes

“…Standards can be developed in different ways. They can be developed by authorities, by a company, or by consortia of actors [33]. Actors can also establish a standard organizations (SOs) or join an existing SO.…”

Conditions favouring the introduction of positive switching costs for adopters of abstract compatibility standards

“…SDOs assure the largest pool of adopters for the finished standard, favour its diffusion, spread development costs among participants, and reduce risks associated with opportunistic behaviours due to the presence of competitors in the development process (Chiesa et al, 2002). Two key characteristics of vertical standards make SDOs ideal for their development: the difficulty of using the standard itself as a competitive weapon (Zhao et al, 2005) and the critical role of users (Nickerson and Muehlen, 2003).…”

Contextual and Tactical Changes in Standards Wars: What Consequences for "Winners"?

“…For example, a tactical choice in the war for information appliances has been to obtain help from market analysts to influence future sales forecast [Chiesa et al (2002)]. Likewise, in the audio player market, Apple and its competitors exercise influence on consumer perception by using "influentials" whose role is quite remarkable: in diverse media, iPod is credited with a market share which fluctuates between 14 percent and 87 percent.…”