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C ommitment to a P rocess I nnovation : N ucor , USX, and T hin ‐S lab C asting
Author(s) -
Ghemawat Pankaj
Publication year - 1993
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/j.1430-9134.1993.00135.x
Subject(s) - competitor analysis , process (computing) , order (exchange) , industrial organization , slab , business , scale (ratio) , casting , marketing , computer science , engineering , materials science , geography , metallurgy , structural engineering , finance , operating system , cartography
This paper studies the order of adoption of a process innovation, thin‐slab casting, by U.S. steel makers. A game‐theoretic model of technology adoption with capacity constraints indicates that incumbents are likely to trail entrants in adopting process technologies that reduce the minimal scale required to compete. Evidence from the case study also indicates, however, that the sorts of interactive effects emphasized by game‐theoretic models may be dominated by the effects of competitors' heterogeneous precommitments.