Competition under continuous technological change
Journal
Managerial and Decision Economics
Journal Volume
13
Journal Issue
2
Pages
135-148
Date Issued
1992
Author(s)
Zannetos Z.S.
Abstract
Abstract This paper examines competition patterns and competitive strategies when technology changes continually. It first discusses optimal behavior for investment in technology. It is argued that although technological innovations supersede existing technologies, there are economically justifiable barriers to investing in the new technologies. These economic barriers, coupled with continuous technological change, have implications for certain aspects of strategy, such as entry by means of new technologies, timing of entry, leapfrog‐type competition, vertical integration, the productivity dilemma, and escalating commitment. Finally, the industrial transformation of the steel industry is used as an example to illustrate these implications.
SDGs
Type
journal article