How interface formats gain market acceptance: The role of developers and format characteristics in the development of de facto standards

Abstract New product introductions often rely on formats and technologies that are subject to strongly contested standards wars. Using a unique data set of interface formats and standard setting ventures in the consumer electronics industry, this research examines the relationships between the characteristics of standard setting ventures, and the market acceptance of interface formats developed and promoted by the venture. Specifically, this paper focuses on the firms that develop and introduce the format. Results indicate that the relationship between the size of the venture and the market acceptance of an interface format is inverted U-shaped. This suggests that more members in the venture per se cannot be counted upon to lead to market acceptance of the format. The findings also suggest that ventures with a greater proportion of firms with broad partnership experience are better at developing formats that find widespread acceptance in the market. The results also suggest that the broader the applicability of a format, the greater its market acceptance, and that marketing intensity in the years prior to developing the format is an important determinant of its market acceptance.

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