Both authors contributed equally; our names are in reverse alphabetical order.
Complementarities and competition: Unpacking the drivers of entrants' technology choices in the solar photovoltaic industry
Article first published online: 5 FEB 2014
Copyright © 2013 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 36, Issue 3, pages 416–436, March 2015
How to Cite
Kapoor, R. and Furr, N. R. (2015), Complementarities and competition: Unpacking the drivers of entrants' technology choices in the solar photovoltaic industry. Strat. Mgmt. J., 36: 416–436. doi: 10.1002/smj.2223
- Issue published online: 23 JAN 2015
- Article first published online: 5 FEB 2014
- Manuscript Accepted: 19 NOV 2013
- Manuscript Revised: 18 NOV 2013
- Manuscript Received: 8 MAY 2013
- Stanford Technology Ventures Program
- BYU Rollins Center for Entrepreneurship and Technology
- complementary assets;
- business ecosystem;
- industry evolution
Entrants in new industries pursue distinct technologies in hopes of winning the technology competition and achieving sustainable competitive advantage. We draw on the complementary assets framework to predict entrants' technology choices in an emerging industry. Evidence from the global solar photovoltaic industry supports our arguments that entrants are more likely to choose technologies with higher technical performance and for which key complementary assets are available in the ecosystem. However, diversifying entrants are more likely to trade off superior performance for complementary asset availability whereas start-up entrants are more likely to trade off complementary asset availability for superior performance. This difference is largely due to diversifying entrants with pre-entry capabilities related to the industry. The study offers a novel illustration of how complementarities and competition shape entry strategies. Copyright © 2013 John Wiley & Sons, Ltd.