Architecture-based approaches to international standardization and evolution of business models

The purpose of this paper is to provide a general framework for analyzing the economic impact of international standardization. Based on an analytical framework of product architecture, we seek an economic model that can harmonize the benefit of various entities such as the leading firms in advanced countries, the firms catching up technologically in newly industrialized economies (NIEs), consumers in the global market, and public standards organizations.
In the following section, we analyze the impact of international standardization in the optical storage industry using the framework of product architecture. We then describe the modularization of products, international standardization, entrants from NIEs, sudden fall in price, and rapid market expansion. Next, we suggest a new type of business model based on international standards. The division of labour between advanced companies and developing companies and their collaborative business model is described. Finally, we discuss economic growth based on the modularization and international standardization. A general model and some empirical data are provided.

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Keywords:

Alliance, Business model, Economic impact, Framework, International standardization, Market growth, Modularization

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Language(s):English
AuthorsOgawa, Koichi (Manufacturing Management Research Center, University of Tokyo, Japan), Shintaku, Junjiro (Graduate School of Economics, University of Tokyo, Japan), Yoshimoto, Tetsuo (Manufacturing Management Research Center, University of Tokyo, Japan)
Publisher:IEC, Geneva, Switzerland
First published / Last update: 2006