This document discusses the emergence of dominant designs in technological innovation. It defines a dominant design as a single product or process architecture that dominates a product category, usually capturing 50% or more of the market. Dominant designs become de facto standards for an industry. Reasons why dominant designs are selected include learning effects, prior learning and absorptive capacity, and network externalities. Learning effects refer to how a technology improves as it is adopted and used more. Prior learning builds a firm's absorptive capacity to assimilate new knowledge. Network externalities mean the value of a good increases as more users adopt it.

1. Chapter Four
Standards Battles and
Design Dominance
BY ROFIQO AZZAHRA

2. The previous chapter described recurrent
patterns in technological innovation, and
one of those patterns was the emergence
of a dominant design. As Anderson and
Tushman pointed out, the technology
cycle almost invariably exhibits a stage in
which the industry selects a dominant
design.
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3. Dominant design
A single product or process
architecture that dominates a
product category—usually50
percent or more of the market. A
dominant design is a “de facto
standard,” meaning that while it
may not be officially enforced or
acknowledged, it has become a
standard for the industry.
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4. WHY DOMINANT DESIGNS ARE
SELECTED

5. ▹ Learning Effects
▹ Prior Learning and Absorptive Capacity
▹ Network Externalities
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6. Learning Effects
Ample empirical evidence shows that the
more a technology is used, the more it is
developed and the more effective and
efficient it becomes. As a technology is
adopted, it generates sales revenues that
can be reinvested in further developing and
refining the technology. Furthermore, as
firms accumulate experience with the
technology, they find ways to use the
technology more productively, including
developing an organizational context that
improves the implementation of the
technology. Thus, the more a technology is
adopted, the better it should become.
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7. Prior Learning and Absorptive Capacity
A firm’s investment in prior learning can
accelerate its rate of future learning by
building the firm’s absorptive capacity.
Absorptive capacity refers to the
phenomenon whereby as firms accumulate
knowledge, they also increase their future
ability to assimilate information. A firm’s
prior related experience shapes its ability
to recognize the value of new information,
and to utilize that information effectively.
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Absorptive capacity
The ability of an
organization to
recognize, assimilate,
and utilize
new knowledge.

8. 8
Network Externalities
Many markets are characterized by network
externalities, or positive consumption
externalities. Network externalities In a market
characterized by network externalities, the
benefit from using a good increases with the
number of other users of the same good.
Network externalities
Also termed positive
Consumption externalities,
this is when the value of a
good to a user increases
with the number of other
users of the same or
similar
good.

9. REFERENCE :
SCHILLING (2017)
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