The Effect of Technological Platforms on the International Division of Labor: A Case Study of Intel’s Platform Business in the PC Industry

Tatsumoto, Hirofumi; Ogawa, Koichi; Fujimoto, Takahiro

doi:10.4337/9781849803311.00022

Cited by 7 publications

(10 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…3 Empirical studies within the engineering design stream have identified such economies of scope can occur in a variety of industrial contexts (such as automotive manufacturing, aerospace engine manufacturing, consumer electronics), and a variety of organizational settings. For example, while early studies of manufacturing platforms observed them within firms, research has also documented how manufacturing platforms were increasingly being shared across firms within supply-chains (Brusoni, 2005;Zirpoli and Becker, 2011;Zirpoli and Caputo, 2002;Brusoni and Prencipe, 2009;Sturgeon, 2002;Doran, 2003;Huang et al, 2005;MacDuffie, 2013;MacDuffie and Helper, 2006;Sako, 2009;Simpson et al, 2006;Tatsumoto et al, 2009). Most recently, technological platforms have been found to operate within even larger networks of firms that are not necessarily linked through buyer-supplier relationships -also known as "innovation ecosystems" (Adner and Kapoor, 2010;Nambisan and Sawhney, 2011) or "ecologies of complex innovation" (Dougherty and Dunne, 2011).…”

Section: The Engineering Design Perspective: Platforms As Technologicmentioning

confidence: 99%

Bridging Differing Perspectives on Technological Platforms: Toward an Integrative Framework

Gawer

2014

AMPROC

155

245

View full text Add to dashboard Cite

An integrative framework is proposed to advance management research on technological platforms, bridging two theoretical perspectives: economics, which sees platforms as double-sided markets, and engineering design, which sees platforms as technological architectures. While the economic perspective informs our understanding of platform competition, the engineering design perspective informs our view of platform innovation. The article argues that platforms can be usefully conceptualized as evolving organizations or meta-organizations that: (1) federate and coordinate constitutive agents who can innovate and compete; (2) create value by generating and harnessing economies of scope in supply or/and in demand; and (3) entail a modular technological architecture composed of a core and a periphery. In support of this conceptualization, a classification system is presented, indicating that technological platforms appear in a variety of organizational forms: within firms, across supply chains, and across industry innovation ecosystems. As an illustration, the framework is then applied to derive a simple model highlighting patterns of interaction between platform innovation and competition, yielding hypotheses that could be tested empirically by future scholars.

show abstract

Section: The Engineering Design Perspective: Platforms As Technologicmentioning

confidence: 99%

Bridging Differing Perspectives on Technological Platforms: Toward an Integrative Framework

Gawer

2014

AMPROC

155

245

View full text Add to dashboard Cite

show abstract

“…These scholars see modularity as both a means for latecomer countries to enter new industries, and in response, for integrality to be a viable strategy for Japanese, European, and American leaders, all within a dynamic setting. See Tatsumoto, Ogawa, and Fujimoto (2009) for a discussion of the impact of modularization on the computer industry and the platform strategy pursued by Intel. capture static cost gains (e.g., by going to lower-wage assembly sites for test and assembly) can actually obstruct the pursuit of modularity (Starr, 2010).…”

Section: Modularity and Its Impact On Technology Diffusionmentioning

confidence: 99%

“…for example, mitsubishi now sells engines to at least 21 carmakers in China, while the engine management system module produced by Delphi (formerly linked to GM) can be utilized with any Mitsubishi engine. In the same way, makers of DRAMs in the semiconductor industry were driven to make their modular parts standardized and consistent with Intel's CPU chipsets, thereby accelerating the rate of market expansion (Tatsumoto et al, 2009). …”

mentioning

confidence: 99%

Design of Industrial and Supra-Firm Architectures: Growth and Sustainability

Mathews

2012

JOD

View full text Add to dashboard Cite

Abstract:The scope of organization design has expanded steadily from work-flow issues and job specifications to firm-level considerations and now to supra-firm industrial structures, where such issues as modularity and clustering loom large. economic analysis has made little headway in analyzing how increasing returns may be generated through suprafirm structures such as networks and clusters, nor in the question of how their industrial architecture (modular vs. integral, open vs. closed) affects economic performance. The focus here is on the supra-firm industrial architectures that have arisen, either spontaneously through the evolution of capitalism or through purposeful design, involving both state and private actors. Striking cases such as the Chinese automotive industry, which started with the production of conventional automobiles and motorcycles and now encompasses both two-wheeled and four-wheeled electric vehicles, provide testimony to the power of some industrial configurations to outperform others. My analyses and arguments are placed in the global context of the urgent need to find ways to accelerate the uptake of green technologies (such as electric vehicles) in order to reduce emissions of greenhouse gases and at the same time promote the industrialization of countries still at lower levels of income and wealth.

show abstract

“…It then decided to supply these platforms to companies in emerging countries, and not to existing companies. This allowed Intel to benefit from the added value, which was brought about by the product market that had expanded through standardization (Tatsumoto, Ogawa, & Fujimoto, 2009).…”

Section: Standardization and Platform Businessmentioning

confidence: 99%

Strategic Standardization

Tatsumoto

Ogawa

Shintaku

2011

ABAS

Self Cite

View full text Add to dashboard Cite

International standardization has become a strategic tool for global firms since new industrial policies emerged in developed countries in the 1980s, which allow firms to easily form a consortium to set industry-wide standards. This standardization has created many consensus standards that change the distribution of added value internationally, and has induced transformation in the international division of labor among the developed and developing countries. Platform business is most eminent in the resulting business ecosystem. It harnesses consensus standards to earn global competitive advantages, based on two practices: adjusting the scope of their knowledge and selecting new business partners who adopt the standards.

show abstract

The Effect of Technological Platforms on the International Division of Labor: A Case Study of Intel’s Platform Business in the PC Industry

Cited by 7 publications

References 0 publications

Bridging Differing Perspectives on Technological Platforms: Toward an Integrative Framework

Bridging Differing Perspectives on Technological Platforms: Toward an Integrative Framework

Design of Industrial and Supra-Firm Architectures: Growth and Sustainability

Strategic Standardization

Contact Info

Product

Resources

About