IBM and its Imitators: Organizational Capabilities and the Emergence of the International Computer Industry

In this paper I will examine the utility of the theory of organiza tional capabilities and evolutionary economic change, as conceptualized by Richard Nelson and Sidney Winter, for explaining the emergence of the computer industry. In particular, I will discuss whether this theory fits the historical experience of IBM during its first two decades of involvement with computers from 1945 to 1965. To provide additional perspective, I will draw comparisons between the IBM case and several efforts to imitate its success. These include the failed attempts of GE and RCA to enter the computer business, the mixed record of the British in fostering an institution comparable to IBM, and the spectacular success of the Japanese in mimicking the American colossus. My treatment of these imitators will not be ex haustive. I wish simply to draw attention to common elements that help explain success and failure in the computer industry and to exam ine whether those elements fit the theory of Nelson and Winter.

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