The organization of platform leadership : an empirical investigation of Intel's management processes aimed at fostering complementary innovation by third parties

This dissertation is an empirical investigation of the processes by which Intel Corporation sustains platform leadership - i.e., the ability of a given firm to influence dynamically the direction of development of other products by a large number of third-parties. It presents an intimate look at Intel's different activities - deployed within and outside the firm - aimed at strategically orchestrating, encouraging, and coordinating complementary innovation in the computer industry. The data come from dozens of interviews of managers and engineers at Intel, complemented with rare access to Intel internal documents and interviews outside the firm. Through an in-depth case-study of Intel focusing on the histories of 22 projects (including both successes and failures) over past nine years, I examine the management processes by which the firm largely succeeds at achieving the global alignment of external innovation, and thus ensures a continuing supply of externally developed complementary products. Several results emerge from the study. Intel invests in: architectural innovations (interfaces), tools for developers, and industry-wide standardization efforts. These strategic activities by Intel appear to be welfare-enhancing. Further, the specific process by which Intel spurs external innovation is a key success factor. Careful management of relationships with third-parties is essential to convey credible commitment not to compete with complementors. To succeed, Intel must manage both external and internal tensions. The main external tensions relate to the perception of a conflict of interest in Intel's innovation-facilitating activities. Internally, Intel must manage the "dissonance" that arises naturally from engaging in the different activities that are necessary to pursue its different objectives. The thesis provides a documented account of the organizational tradeoffs an exemplary architectural leader faces when trying to maintain its position as a platform leader in an environment where other innovators can choose whether to maintain compatibility. In so doing, the study helps uncover some of the managerial and organizational sources of platform leadership.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2000

Author dc:creator

• Gawer, Annabelle, 1969-

Advisor dc:contributor.advisor

• Michael A. Cusumano.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/8956

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/8956