Electronic Submission Identification Number : xxxxx Technological Evolution at the Producer–Consumer Interface Draft 2 (January 5, 2000) JOHANNES M. PENNINGS The Wharton School University of Pennsylvania 2000 Steinberg Hall – Dietrich Hall Philadelphia, PA 19104 – 6370 phone (215) 898 – 7755 fax (215) 898 – 0401
[email protected] and HANN OHL KIM Australian Graduate School of Management University of New South Wales Sydney 2052 Australia phone +61 – 2 – 9931 – 9552 fax +61 – 2 – 9313 – 7279
[email protected] Electronic Submission Identification Number : 12140 Submitted to Technology and Innovation Management Division, Academy of Management Meetings Toronto 2000 1 Electronic Submission Identification Number : xxxxx ABSTRACT This paper examines the emergence of dominant designs in the tennis racket industry. Unlike other studies, we consider both the competitive dynamics among firms comprising the industry, as well as the choice behavior of consumers. We assume that innovations are usually surrounded by a good deal of causal ambiguity, giving producers opportunities for shaping consumer choice behavior, but on the other hand according a greater weight to visible and legitimate actors on the demand side who can alleviate ambiguity about new products. In short, we very much stress the need to jointly consider both supply and demand conditions and to view producers and consumers in interaction with each other. Furthermore, we hold the selection environment in which new and existing designs come and go, to include both economic (e.g., number of competitors) and institutional (e.g., regulation) factors. We distinguish several dominant designs, based on material head, width and length of racket. Some designs are superior than other ones, based on physical and consumer ratings, but quality is ambiguous, and even so, better designs do not always win.