Market-level information and the diffusion of competing technologies: an exploratory analysis of the LAN industry

Market-level information diffused by print media may contribute to the legitimation of an emerging technology and thus influence the diffusion of competing technological standards. After analyzing more than 10,000 trade media abstracts from the Local Area Networks (LAN) industry published between 1981 and 2000, we found the presence of differential effects on the adoption of competing standards by two market-level information types: technology and product availability. The significance of these effects depends on the technology's order of entry and suggests that high-tech product managers should make strategic use of market-level information by appropriately focusing the content of their communications.

[1]  W. D. Perreault,et al.  Reliability of Nominal Data Based on Qualitative Judgments , 1989 .

[2]  Glenn R. Carroll,et al.  Organizational evolution in a multinational context: entries of automobile manufacturers in Belgium, Britain, France, Germany, and Italy , 1995 .

[3]  Barry L. Bayus,et al.  The Market Evolution and Sales Takeoff of Product Innovations , 2002, Manag. Sci..

[4]  E. Hippel,et al.  Lead users: a source of novel product concepts , 1986 .

[5]  R. Kelly Rainer,et al.  Environmental Scanning for Information Technology: An Empirical Investigation , 1997, J. Manag. Inf. Syst..

[6]  Carl F. Mela,et al.  The Effect of Standardized Information on Firm Survival and Marketing Strategies , 2005 .

[7]  Geoffrey A. Moore.  Crossing the chasm : marketing and selling high-tech products to mainstream customers , 1999 .

[8]  Mathew L. A. Hayward,et al.  Celebrity Firms: The Social Construction Of Market Popularity , 2006 .

[9]  D. Rubinfeld,et al.  Econometric models and economic forecasts , 2002 .

[10]  David L. Deephouse,et al.  Media Reputation as a Strategic Resource: An Integration of Mass Communication and Resource-Based Theories , 1999 .

[11]  T. S. Robertson,et al.  Technology Diffusion: An Empirical Test of Competitive Effects , 1989 .

[12]  Joseph Farrell,et al.  Standardization, Compatibility, and Innovation , 1985 .

[13]  D. Horsky,et al.  Advertising and the Diffusion of New Products , 1983 .

[14]  P. Geroski.  Models of technology diffusion , 2000 .

[15]  Howard E. Aldrich,et al.  Fools Rush in? The Institutional Context of Industry Creation , 1994 .

[16]  Bruce D. Buskirk,et al.  Technology life cycles in industrial markets , 1992 .

[17]  T. S. Robertson,et al.  Handbook of Consumer Behavior , 1990 .

[18]  V. Mahajan,et al.  Marketing hype: A new perspective for new product research and introduction , 1987 .

[19]  J. B. Quinn,et al.  Managing Innovation: Controlled Chaos , 1985 .

[20]  James M. Utterback,et al.  Innovation, Competition, and Industry Structure , 1993 .

[21]  Allen M. Weiss,et al.  Marketing in Technology-Intensive Markets: Toward a Conceptual Framework , 1999 .

[22]  Richard L. Daft,et al.  Organizational information requirements, media richness and structural design , 1986 .

[23]  M. Spence.  Job Market Signaling , 1973 .

[24]  C. Shapiro,et al.  Technology Adoption in the Presence of Network Externalities , 1986, Journal of Political Economy.

[25]  J. West.  Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution , 2007 .

[26]  G. Kalyanaram,et al.  Order-of-Entry Effects on Consumer Memory and Judgment: An Information Integration Perspective , 1992 .

[27]  C. Shapiro,et al.  Network Externalities, Competition, and Compatibility , 1985 .

[28]  Paul S. Goodman,et al.  Technology and Organizations , 1990 .

[29]  K. Weick.  Technology as equivoque: sensemaking in new technologies , 1990 .

[30]  Gary Biglaiser,et al.  Middlemen as Experts , 1993 .

[31]  James B. Wade.  Dynamics of organizational communities and technological bandwagons: An empirical investigation of community evolution in the microprocessor market , 1995 .

[32]  A. Joshi,et al.  Customer Knowledge Development: Antecedents and Impact on New Product Performance , 2004 .

[33]  B. Bayus,et al.  Truth or Consequences: An Analysis of Vaporware and New Product Announcements , 2000 .

[34]  D. Horsky.  A Diffusion Model Incorporating Product Benefits, Price, Income and Information , 1990 .

[35]  Christine Moorman,et al.  Market-Level Effects of Information: Competitive Responses and Consumer Dynamics , 1998 .

[36]  M. Callon,et al.  Technological competition, strategies of the firms and the choice of the first users: the case of road guidance technologies , 1995 .

[37]  Terence A. Shimp,et al.  The Use of Extrinsic Cues to Facilitate Product Adoption , 1982 .

[38]  Peter R. Dickson,et al.  Toward a General Theory of Competitive Rationality , 1992 .

[39]  E. Rogers.  Diffusion of Innovations , 1962 .

[40]  Veronica Wong,et al.  Marking high-technology market evolution through the foci of market stories: the case of local area networks , 2002 .

[41]  Charlotte H. Mason,et al.  Technical Note---Nonlinear Least Squares Estimation of New Product Diffusion Models , 1986 .

[42]  Timothy G. Pollock,et al.  Media Legitimation Effects in the Market for Initial Public Offerings , 2003 .

[43]  Bruce G. S. Hardie,et al.  Marketing-Mix Variables and the Diffusion of Successive Generations of a Technological Innovation , 2001 .

[44]  Pradeep K. Chintagunta,et al.  The Proportional Hazard Model for Purchase Timing , 2003 .

[45]  K. Atuahene–Gima,et al.  Market Knowledge Dimensions and Cross-Functional Collaboration: Examining the Different Routes to Product Innovation Performance , 2007 .

[46]  Andrew H. Van de Ven,et al.  Learning the Innovation Journey: Order out of Chaos? , 1996 .

[47]  Rashi Glazer.  Marketing in an Information-Intensive Environment: Strategic Implications of Knowledge as an Asset , 1991 .

[48]  Per Lekvall,et al.  A STUDY OF SOME ASSUMPTIONS UNDERLYING INNOVATION DIFFUSION , 1973 .

[49]  Daniel Kahneman,et al.  Availability: A heuristic for judging frequency and probability , 1973 .

[50]  E. Muller,et al.  Models of New Product Diffusion Through Advertising and Word-of-Mouth , 1978 .

[51]  William J. Abernathy,et al.  Patterns of Industrial Innovation , 1978 .

[52]  Mark C. Suchman.  Managing Legitimacy: Strategic and Institutional Approaches , 1995 .

[53]  O. Sorenson,et al.  Science and the Diffusion of Knowledge , 2001 .

[54]  Allen M. Weiss,et al.  Vendor Consideration and Switching Behavior for Buyers in High-Technology Markets , 1995 .

[55]  S. Dutta,et al.  Success in High-Technology Markets: is Marketing Capability Critical? , 1999 .

[56]  Namwoon Kim,et al.  A simultaneous model for innovative product categorysales diffusion and competitive dynamics , 1999 .

[57]  John W. Meyer,et al.  Institutionalized Organizations: Formal Structure as Myth and Ceremony , 1977, American Journal of Sociology.

[58]  J. Porac,et al.  Sociocognitive Dynamics in a Product Market , 1999 .

[59]  R. Calantone,et al.  The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and Empirical Examination , 1998 .

[60]  David F. Midgley,et al.  The effect of network structure in industrial diffusion processes , 1992 .

[61]  Terri L. Griffith.  Technology Features as Triggers for Sensemaking , 1999 .

[62]  A. Rangaswamy,et al.  The Emergence of Dominant Designs , 2006 .

[63]  S. Ratneshwar,et al.  Promoting Consumer Adoption of High-Technology Products: Is More Information Always Better? , 2002 .

[64]  R. Rust,et al.  Reliability Measures for Qualitative Data: Theory and Implications , 1994 .

[65]  Frank Alpert,et al.  An Empirical Investigation of Consumer Memory, Attitude, and Perceptions Toward Pioneer and Follower Brands , 1995 .

[66]  Vijay Mahajan,et al.  New Product Diffusion Models in Marketing: A Review and Directions for Research: , 1990 .

[67]  V. Folkes,et al.  The Availability Heuristic and Perceived Risk , 1988 .

[68]  John A. Czepiel.  Word-of-Mouth Processes in the Diffusion of a Major Technological Innovation , 1974 .

[69]  F. Bass.  A new product growth model for consumer durables , 1976 .

[70]  Mark S. Granovetter.  The Strength of Weak Ties , 1973, American Journal of Sociology.

[71]  Frank M. Bass,et al.  A New Product Growth for Model Consumer Durables , 2004, Manag. Sci..

[72]  Detelina Marinova,et al.  Actualizing Innovation Effort: The Impact of Market Knowledge Diffusion in a Dynamic System of Competition , 2004 .

[73]  S. Kapur.  Technological Diffusion with Social Learning , 1995 .

[74]  Gregory S. Carpenter,et al.  Reflections on “Consumer Preference Formation and Pioneering Advantage” , 1994 .

[75]  Jakki J. Mohr.  The Marketing of High-Technology Products and Services: Implications for Curriculum Content and Design , 2000 .

[76]  Gregory S. Carpenter,et al.  Consumer Preference Formation and Pioneering Advantage , 1989 .

[77]  Clayton M. Christensen,et al.  CUSTOMER POWER, STRATEGIC INVESTMENT, AND THE FAILURE OF LEADING FIRMS , 1996 .

[78]  G. Tellis,et al.  Will It Ever Fly? Modeling the Takeoff of Really New Consumer Durables , 1997 .

[79]  D.,et al.  Regression Models and Life-Tables , 2022 .