Architectural Innovation and the Attacker's Advantage from Complementary Assets: The Case of the Video Game Console Industry

Posted: 20 Sep 2006

See all articles by Allan Afuah

Allan Afuah

University of Michigan, Stephen M. Ross School of Business; University of Michigan at Ann Arbor - Corporate Strategy and International Business

Rosa Grimaldi

University of Bologna - Department of Management

Date Written: December 2005

Abstract

In exploring the role that complementary assets play in the face of a technological innovation, researchers have focused on how commercialization complementary assets help incumbents. We focus on how both technological and commercialization complementary assets help attackers erode incumbent competitive advantages. We show that complementary assets can help an attacker not only to offer a better product, but also to more effectively commercialize the product and position the firm to profit from it. We apply our arguments to the video game console industry in which attackers have been able to use their complementary assets to take over leadership of the industry each time a new generation of microprocessors has been introduced. Our framework has implications for research in dynamic capabilities. It also has both policy and management implications.

Suggested Citation

Afuah, Allan and Grimaldi, Rosa, Architectural Innovation and the Attacker's Advantage from Complementary Assets: The Case of the Video Game Console Industry (December 2005). Available at SSRN: https://ssrn.com/abstract=931532

Allan Afuah (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

University of Michigan at Ann Arbor - Corporate Strategy and International Business ( email )

701 Tappan Street
Ann Arbor, MI 48109
United States

Rosa Grimaldi

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, Bologna 40126
Italy

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