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  • Journal of Economics & Management Strategy

Platform Leadership and Supply Chains: Intel, Centrino, and the Restructuring of Wi-Fi Supply

By: Roberto Fontana and Shane Greenstein
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Abstract

In this paper we examine Intel’s launch of Centrino and interpret it as platform leaders 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. "Platform Leadership and Supply Chains: Intel, Centrino, and the Restructuring of Wi-Fi Supply." Journal of Economics & Management Strategy (forthcoming). (Pre-published online November 20, 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
  • The Impact of the General Data Protection Regulation on Internet Interconnection By: Ran Zhuo, Bradley Huffaker, KC Claffy and Shane Greenstein
  • Threadless: The Renewal of an Online Community By: Shane Greenstein, Karim Lakhani and Christian Godwin
  • IBM Watson at MD Anderson Cancer Center By: Shane Greenstein, Mel Martin and Sarkis Agaian
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