Publications
Publications
- 2024
- HBS Working Paper Series
Open Devices and Slices: Evidence from Wi-Fi Equipment
By: Do Yoon Kim, Roberto Fontana and Shane Greenstein
Abstract
Prior studies suggest that openness shapes the introduction of new products. This study
collects novel data on all routers and subcomponents introduced between 2000 and 2018. We
characterize each firm's position in a supply chain as upstream component providers or
downstream router assemblers. We explore the quasi-natural experiments afforded by the
staggered introduction of open-source drivers to estimate the impact of openness in supply chains
on innovation. Following prior literature, we measure a firm's ability to negotiate with current and
potential partners (i.e., autonomy and restructuring). We find evidence that openness improves
supplier autonomy and new product introductions, as well as relationship duration with assemblers.
These estimates suggest that openness increased product introductions through a specific
mechanism, enlarging the options available to component suppliers. The most prominent
component suppliers benefited from increased openness by expanding their opportunities to do
business with others. In contrast, we see little evidence that openness led entrants, small firms, or
assemblers to introduce new products.
Keywords
Citation
Kim, Do Yoon, Roberto Fontana, and Shane Greenstein. "Open Devices and Slices: Evidence from Wi-Fi Equipment." Harvard Business School Working Paper, No. 24-045, January 2024.