Conditions to introduce new functionality in a mature industry with modular product structure
(English)Manuscript (preprint) (Other academic)
The paper deals with the introduction of innovations adding new functionality to a mature and modularizcd industry. The purpose of the paper is to describe and analyze 1) the technical dependencies between the innovation and the established product architecrure and 2) the organizational dependencies between the young technology-driven firm and the established firms. The paper is based on a case study containing two firms involved in the development of active safety applications in the automotive industry. One firm is a young technology-driven firm acting as a highly innovative R&D collaborator to the other firm which is an established manufacturing firm responsible for the final product. The case shows that although a young technology-driven firm may well be aware of its state-of-the-art technical capabilities, limited knowledge of the more subtle managerial requirements needed to get the innovation accepted by established firms impede marker success. The managerial requirements indicated in the case include an understanding of how power dependencies strongly influence the ability to introduce an innovation in a mature and modularized industry. The conclusion of the paper is that power dependence between different organizations within the mature and modularized industry obstructs the possibilities for young technology-driven firms to enter inro the prevailing industry structure. Based on power dependence relations the paper argues that product architecture does not create the frame for the differem modules in a one-way manner, but also that the fixed modules create the frame for the kind of architecture possible to design.
Engineering and Technology
IdentifiersURN: urn:nbn:se:liu:diva-100793OAI: oai:DiVA.org:liu-100793DiVA: diva2:663700