Platforms, Markets and Innovation

Platforms, Markets and Innovation

Edited by Annabelle Gawer

Annabelle Gawer presents cutting-edge contributions from 24 top international scholars from 19 universities across Europe, the USA and Asia, from the disciplines of strategy, economics, innovation, organization studies and knowledge management. The novel insights assembled in this volume constitute a fundamental step towards an empirically based, nuanced understanding of the nature of platforms and the implications they hold for the evolution of industrial innovation. The book provides an overview of platforms and discusses governance, management, design and knowledge issues.

Chapter 12: Design Rules for Platform Leaders

Stefano Brusoni and Andrea Prencipe

Subjects: business and management, strategic management, economics and finance, economics of innovation, industrial organisation, services, innovation and technology, economics of innovation


12. 1. Design rules for platform leaders Stefano Brusoni and Andrea Prencipe INTRODUCTION The case illustrated in this chapter was explicitly chosen as an example of major strategic, and infrequent, decisions in the lifetime of the organization studied as it was engaged in the effort to develop a radically new platform. The aircraft engine industry case illustrates the introduction of a new platform architecture in a high-technology setting. The evidence describes radical changes that revolutionized the products and the manufacturing processes. This was a ‘make-or-break’ decision which implied the definition of a new ‘way of doing things’. In choosing this type of empirical setting, this chapter focuses on phenomena that are likely to yield revealing observations about the distinct effects that products and knowledge bases have on organizations. On this basis, the aim of this chapter is not to question the robustness of the organizational implications found in the modularity literature. Such implications are reliable for understanding the behavior of organizations in ‘normal’ times. The objective of this chapter is instead to highlight the problems faced by organizations that (are forced to) choose to live in ‘non-normal’ times. The chapter is structured as follows. Section 2 discusses the key building blocks of the multi-domain framework we propose. Section 3 provides a discussion of the case study that illustrates the complex dynamics of the relationship between product and organization. Section 4 discusses our framework and offers some thoughts on the implications for practice. 2. TOWARDS A MULTI-DOMAIN NETWORK APPROACH In order...

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