By Jas Gill, Peter Swann
This e-book examines the position of strategic visions of destiny technological improvement within the evolution of industry constitution. this attitude bargains a unique manner of resolving a few of the puzzles that experience arisen in realizing the consequences of quick know-how switch and industry constitution. Strategic visions are obvious to play a relevant function in company procedure, and commercial coverage. The authors increase a few theoretical instruments to check those questions, and current five case reports of excessive expertise industries, with conclusions for coverage. The e-book may be of curiosity to commercial economists considering the results of fast technological switch, and to these drawn to know-how administration. it is going to even be of curiosity to economists and others operating in excessive know-how industries, and in executive.
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Additional resources for Corporate Vision and Rapid Technological Change: The Evolution of Market Structure
On the other hand, if there is no clearly articulated vision, or the actual path of technology change is not consistent with an old and outdated vision of the future, then any change is likely to appear ‘radical’, and that is much more difficult to cope with. Indeed, as argued in Chapters 1 and 2, it could reasonably be said that the distinction between incremental and radical change has little meaning unless defined with reference to the organisation’s vision of the future. The external strategic use of visions is similar to the external tactical use in that the aim is to influence either the investment decisions of users or the entry decisions of (actual or potential) rivals, or perhaps both.
This is especially relevant for a technology with high switching costs. A credible vision of the future may make an even greater disincentive to entry for the rival although a credible demonstration of commitment is harder too. Of course, any firm may use ‘visions’ for a variety of purposes, and indeed any one statement may have more than one type of effect (a tactical announcement may be for internal and external user and external rival 27 CORPORATE VISION AND RAPID TECHNOLOGICAL CHANGE purposes), but nevertheless the classification is conceptually valuable.
This is certainly true in the semiconductor industry where one generation of memory chip (for example) would rapidly be made obsolescent by the next generation (which achieves higher component densities). Rather than assuming Nash-Cournot conjectures with respect to the rate of technology advance, the model assumes that each firm predicts the others will follow the Moore’s law vision, and then two decision scenarios are considered. In the first, the firm can decide to invest enough to keep up with the principal vision, or less—though that would be tantamount to a decision to exit—but will not consider investing more.
Corporate Vision and Rapid Technological Change: The Evolution of Market Structure by Jas Gill, Peter Swann