A conceptual assessment of tradeoffs between technological innovation and technological standards

Abstract

In this conceptual paper we revisit the resource-based view and its four criteria and highlight specific tradeoffs between uniqueness, an inherent characteristic of technological innovation, and commonness, a central aspect of technological standards. Our view is that local and regional economies are more likely to leverage on new product innovation when new technologies are compatible. We describe some of the fundamental factors strategists should consider if they are to successfully navigate their organizations into the global economy. We provide conceptual means that reconcile the impetus to develop inimitable technological breakthroughs with the increasing need for standards, compatibility, and seamless interchangeability among technology-based products and services.