Firm’s Innovation Expectation, Potential and Actions: Impressions on the Japanese Videogame Console Market

Paulo Antônio Zawislak, Fabiano Larentis, Cassio B. Machado, Alexandre M. Andrade

Abstract


Under the theoretical developments proposed by the Theory of the Firm, it is possible to understand the firm as the primary site for innovation. Innovation effort is justified by the need to generate solutions which should be validated in the market. This market validation process enables one to identify the life cycle of the solution, represented by the “S-curve”. Whether due to its sales volume, market share and even technological improvements, there is a sequence of events that are, invariably, repeated in all technologies: onset, growth, maturing and decay. This paper presents, based on a model for innovation expectation and potential, an analysis of the firms’ actions along different S-curves. To do this, sales volume historical data of videogame consoles in Japan were used. The most interesting finding is that the firms terminate the life cycle of each technology keeping, simultaneously, two or more different versions of the consoles.

Keywords


technology; innovation; S-Curve; videogame console market; decision making; performance.

Full Text:

PDF [en]

References


AMENDOLA, M. (1983). Un changement de perspective dans l'analyse du processus d'innovation. In: Tournemine, Régis L. de. (1983) L'Innovation. La Documentation Française. Paris.

CHANDLER, A. D. j.r. (1962). Strategy and Structure. The M.I.T. Press, Cambridge, MA.

COASE, R. H. (1937). The Nature of the Firm. Economica. 4(16): 386-405, November.

DOSI, G. (1991). Perspectives on evolutionary theory. Science and Public Policy, 18(6):353-61, December.

FREEMAN, C. (1982). The economics of industrial innovation. The MIT Press, Cambridge, MA.

KNIGHT, F. H. (1921). Risk, Uncertainty, and Profit. Kelley and Millman, New York.

LALL, S. (1992). Technological capabilities and industrialization. World Development, 20(2):165-86.

NELSON, R.R., WINTER, S.G. (1982). An Evolutionary Theory of Economic Change. Belknap, Cambridge, MA.

NONAKA, I., TAKEUCHI, H. (1995). The knowledge-creating company: how Japanese companies create the dynamics of innovation. Oxford University Press, New York.

PAVITT, K. (1992). Some foundations for a theory of large innovating firm. In: DOSI, G. et al. (Eds.). Technology and Enterprise in a Historical Perspective. Oxford University Press, Oxford.

PENROSE, E. (1959). The Theory of the Growth of the Firm. Oxford University Press, Oxford.

RICHARDSON, G. B. (1972). The organization of industry. The Economic Journal.

SCHUMPETER, J. A. (1912). The Theory of Economic Development. Abril Cultural, São Paulo. 1985 (for the Brazilian translation).

SOLOW, R. (1957). Technical Change and The Aggregate Production Function. Review of Economics and Statistics. August, pp.312-20.

VGCHARTZ (2008). Video Games, Charts, News, Forums, Reviews, Wii, PS3, Xbox360, DS, PSP. http://www.vgchartz.com. [Retrieved from the Web 11/06/08].

VGCHARTZ (2009). Video Games, Charts, News, Forums, Reviews, Wii, PS3, Xbox360, DS, PSP. http://www.vgchartz.com. [Retrieved from the Web 30/11/09.]

WILLIAMSON, O. E. (1985). The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. The Free Press, New York.

ZAWISLAK, P. A et al (2008). Towards the Innovation Function. Journal of Technology Management & Innovation. 3(4):17-30.




DOI: http://dx.doi.org/10.4067/S0718-27242009000400006



Copyright (c)



2017 © Universidad Alberto Hurtado - Facultad de Economía y Negocios. 
Erasmo Escala 1835 - Santiago, Chile.
Economic Analysis Review | Observatorio Económico | Gestión y Tendencias 

Journal Supported by Chimera Innova Group