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  • 2020
  • Working Paper

Centrino and the Restructuring of Wi-Fi Supply

By: Roberto Fontana and Shane Greenstein
  • Format:Electronic
  • | Language:English
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Abstract

In this paper we examine Intel’s launch of Centrino and interpret it as platform leader’s attempt to restructure a supply chain. We provide a narrative of key actions and how they coordinated changes and offer a framework of the predictable consequences for complementary markets. We then collect data and test these predictions on outcomes in several related complementary markets. The overall findings are consistent with our framework. We show that the launch of Centrino increased the likelihood of exit from internal and external Wi-Fi cards markets, and we find that the magnitude of the effect was largest for internal cards. We also show that the launch of Centrino stimulated product introduction in the markets for complements overall and find that the effect varied across type of routers. Finally, we show that experience with producing Wi-Fi cards shaped product introduction by router providers.

Keywords

Wireless Technology; Product Launch; Supply Chain; Restructuring; Framework

Citation

Fontana, Roberto, and Shane Greenstein. "Centrino and the Restructuring of Wi-Fi Supply." NBER Working Paper Series, No. 27754, August 2020.
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About The Author

Shane M. Greenstein

Technology and Operations Management
→More Publications

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More from the Authors
  • IBM Watson at MD Anderson Cancer Center By: Shane Greenstein, Mel Martin and Sarkis Agaian
  • Where the Cloud Rests: The Economic Geography of Data Centers By: Shane Greenstein and Tommy Pan Fang
  • Digital Labor Market Inequality and the Decline of IT Exceptionalism By: Ruiqing Cao and Shane Greenstein
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