• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Sponsorship of technological platforms as niche construction: Sun Java case
 

Sponsorship of technological platforms as niche construction: Sun Java case

on

  • 701 views

Pavel Luksha. Presentation at European Association of Evolutionary Political Economists meeting. Case of Sun Java sponsored technological platform revisited with the concept of niche construction

Pavel Luksha. Presentation at European Association of Evolutionary Political Economists meeting. Case of Sun Java sponsored technological platform revisited with the concept of niche construction

Statistics

Views

Total Views
701
Views on SlideShare
699
Embed Views
2

Actions

Likes
0
Downloads
4
Comments
0

1 Embed 2

http://www.linkedin.com 2

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Sponsorship of technological platforms as niche construction: Sun Java case Sponsorship of technological platforms as niche construction: Sun Java case Presentation Transcript

    • Pavel Luksha [email_address] Strategies of Niche Construction for Dominant Technological Standards EAEPE’2009 Annual Conference, Amsterdam 7 November 2009
    • How is dominant position of a technological standard achieved?
      • Self-organization (Rosenkopf & Tushman, 1998)
        • semi-conductor industry in the US (Langlois, 2004)
        • automotive component industry (Thompson, 1954)
      • Battle of standards (incumbent-entrant battle)
        • electric current standard ( AC / DC )
        • rpm standards in music industry ( Langlois & Robertson, 1992 )
        • VHS recording standards ( Hariharan, 1990; Cusumano et al. 1991) and (recent) DVD standards
    • Technological standards as a part of industry architecture
      • Industry architectures (Jacobides, Knudsen, Augier, 2006) :
        • provide the contours and framework within which actors interact; they are usually partly designed (e.g. by regulation or de facto, by standards), and partly emergent (by the creation of socially understood templates and means to coordinate economic activities).
      • Role of firm’s agency in shaping architecture: lobbying, branding, etc.
    • Niche construction is a pro-active strategy
      • Niche construction is a concept originating in biological evolutionary theory (Lewontin, 1985; Odling-Smee, Feldman, Laland, 2003): a process by which organisms, through their actions or their metabolism, transform the environment
      • Niche construction by the firm is a sustained change to the resources and relations in organizational environment that has long-lasting effect upon the focal organization & its constituents . It is a transformation of resource pool (incl. institutional constraints), i.e. ‘change to rules of the game’ rather than ‘game by the rules’
      • Examples are: brand creation & consumer preference management, supplier capability management, workforce capability management, lobbying, etc.
    • Typical strategies of uni-organizational guided niche construction G overnance mode Focal organization power is low Focal organization power is high Legitimate use of power Illegitimate use of power Direct governance Convincing , support in learning, etc. Mentoring Coopting Manipulation Violence Indirect / network governance Shared values , emotional contamination etc. Norm / goal / value setting Deceiving
    • Case of Java and Sun Microsystems
      • Sun Microsystems is a leader in workstation market ( Unix servers) , computer components , software and IT services
      • Java platform is a language for development and execution of ‘applets’ for Internet and ‘smart device’ applications
      • History of Java standard emergence was considered by Garud, Jain and Kamaraswamy (2002)
      • The task of this presentation is to reconsider the evidence
    • Stages of Java standard formation Stage E : 2000-8 Stage D : 1997- 2006 Stage C : 1996-9, 2002-8 Stage B: 1995-9 Stage A: 1990-5 Product development & launch Installation base expansion Battle with the incumbent Standardi-zation ‘ Open control’ mode of standard development
    • Stage A : Product development & launch
      • Early 1990s: ‘Project Oak’ - a universal programming technology for smart devices (initially targeted cable TV)
      • 1994: decided to re-focus the product as a programming language for the Internet emerging market (renamed Oak to Java )
      • 1995: launched Java as Internet programming platform
      • Initial goal was to become the centre of the Internet-based programming community in post-PC era
    • Stage B: Installation base expansion
      • Fast expansion of the installation base as the key factor in spreading the standard ( Schilling, 1999, 2004) :
        • 1995-6: Free access to the technology for independent developers. Supported learning : created courses and tools that facilitate the learning of the new language environment
        • 1995-7: Expectation shaping : promise of future advantages yet not realized in the system allowed to get the support of major vendors ( HP, Oracle, …)
        • 1995-9: Used the ‘community power’ : license allowed to amend the code subject to sharing it with Sun and other vendors for free
    • Stage C : Battle with incumbent
      • Java as an open alternative for the ‘closed code’ by Microsoft
      • Microsoft reactions :
        • initially ignored Java and tried to develop similar functionality project (Blackbird) but failed (1995-6)
        • had to acquire Java license to catch up with Netscape in browser market (1997)
        • tried to ‘poison’ Java (1997-99)
      • Sun response
        • lawsuit against Microsoft on license terms violation, won in 2000
      • Similar projects of Microsoft :
        • ActiveX in 1999, Microsoft .NET in 2002
      • Microsoft and Sun partnership in 2008
    • Stage D : Standardization
      • Standard development in ‘open control’ mode:
        • Sun officially claiming its aim to maintain ‘open control’ over the technology
        • standard maintenance through certification of independent Java applications by Sun ( ‘100% Pure Java’ initiative) (1997-9)
        • Sun’s voluntary participation in Java Community Process ( collective process for Java development ) (1998-2006-)
      • Standardization activities
        • work with leading independent standardization bodies ( ISO , ECMA , NIST )
        • documented attempts to coopt standardization bodies in order to push decisions desired by Sun
        • 2006-8: Java becomes GNU (free open-source technology)
    • Stage E : ‘Open control’ standard development
      • Expansion to complimentary markets
        • Acquisition of complimentary product developers (2000- 2008 )
        • Alliance with key hardware ( mobile phones , DVD players) and software producers to achieve ‘universal language’ position
      • Marketing efforts : creation of brand that can be recognized by end users (incl. TV shows)
      • Education efforts :
        • Sun Academy initiative in partnership with universities
        • support of independent Java User Groups
    • Traditional explanation : focus on conflict and resource mobilization ( Garud et al., 2002) Stage E : standard development Stage D : standardi- zation Stage C : battle with incumbent Stage B: installation base Stage A: product development & launch Focus on Stage C : direct conflict with the incumbent (Microsoft) Stage B : resource mobilization to combat incumbent Image of ‘Java Sun open code against Microsoft closed code’ Stage D&E: improving competitive advantage over the incumbent
    • Role of niche construction as a harmonizing strategy Stage E : standard development Stage D : standardi- zation Stage C : battle with incumbent Stage B: installation base Stage A: product development & launch Stage A : role of ‘ initial construct’ Stage B : role of teaching / learning ( in direct contact with developers ) to create installation base Stage D-E : switch to the standardization strategy once the power over community is reached Stage B, D: promotion of the common understanding ( open source ) to establish common goal and values Stage E : role of education and brand building as niche constructing strategies strengthening central position of Sun
    • Typical strategies changed in time: case of Sun Java 2 1 3 4 G overnance mode Focal organization power is low Focal organization power is high Legitimate use of power Illegitimate use of power Direct governance Convincing , support in learning, etc. Mentoring Coopting Manipulation Violence Indirect / network governance Shared values , emotional contamination etc. Norm / goal / value setting Deceiving
    • Conclusion
      • Niche construction strategies (pro-active changes to the environmental constraints) are instrumental in creating and maintaining the dominant standard .
      • In ‘open control’ situations, niche construction strategies can guide the development of the standard and maintain the central position in the community .
      • Unlike the ‘battle of standard’ approach to technological standard dominance, niche construction approach seeks harmonization of industrial architecture components .