Sailing Ship Effect Essay

MGMT002: Technology & Universe Change AY 2009-2010, Term 2 Pupil Paper Review, Howells (2002) The response of aged technology incumbents to technological competition cruising ship impact exist? Prepared for: Dr Terence Supporter Prepared by: Nicole Isabella Re: Su Sien (G14) – Does the Howells presents the group with a crucial view of the ‘sailing send effect’ and postulates that it is triggered simply by misinterpretations depending on insufficient understanding, and that the dyrare. This ‘sailing ship effect’ is the rocess whereby the advent of a new technology engenders a response aimed at improving the incumbent technology. I am inclined to Howells’ view and will additional demonstrate this below.

There is evidence to believe that the wind-surfing ship effect is existing in the world today. Cooper and Schendel (1988) regarded 7 diverse cases and I would like to focus on the case among vacuum tubes and the receptor. A simple timeline of the advancement the vacuum tubes indicates that the older technology (vacuum tubes) ontinued to be superior and reached its top stage of technical advancement only after the new technology (transistor) was presented. non-etheless, there exists still too little evidence to definitely conclude that the going ship result did come about.

The going ship impact is questioned due to the range of externalities mixed up in technological advancement any product, making it challenging to conclude that accelerated improvements made by incumbent technology is usually driven entirely by the introduction of new types. Granted, there is also a timely connection between the introduction of new systems and the quicker improvement of old kinds, however , a single must question the genuine determination for this action (government money, ‘normal’ intra- industry competition, lock-in result or arrival of new technology). The Flettner rotor send, for example , was obviously a ‘government-inspired’ task. Research and Development (R; D) is vital in the improvement of any technology.

The of funds is a trouble many businesses face, nevertheless , with high barriers to entry coupled by inancial support from your government, not necessarily difficult to appreciate how this could provide the impetus for accelerated improvement of a technology as a company would want to gain monopoly in the marketplace. In the Alkalinity industry, the Claus-Chance process was already inside the works prior to the threat in the Leblanc procedure. This advancements are still being made.

I believe that the extent of the sailing deliver effect may also be related to the substitutability in the old and new technologies. The more substitutable the new technology is, more suitable need to get the improvement in the old technology to maintain competition in the market (assuming the company does not quit the sector or switch from aged to new technology). This may be a factor, that allows the cohabitation of the two old and new technology. The advancement of cameras today illustrates these idea. Inspite of the technological improvement of cams (from film to digital), digital cameras and film digital cameras still coexist in the arket because of their relatively low substitutability (as film photography differs from the others from that of digital photography).

It would be fallacious to argue that the lack of evidence of the going ship impact would mean that it can be nonexistent. Therefore , I do not believe that this kind of effect is non- existent but support Howells’ point of view on the rarity of the sailing ship impact because it is also superficial to claim that the creation of new technology provided the primary driving force intended for the accelerated improvement of old systems.

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