The impact of technological change on market structure can be much
more drastic than that of traditional sources of competition, such
as price. However, the analysis of such change is derived from two
discrete perspectives: economics and organizational behaviour. In
this study, these two traditions are brought together. The authors
present an economic analysis of technological change and market
structure, and an organizational strategy towards technological
change and corporate structure. In a radical departure from
tradition, the connections between technological change and market
structure cannot be properly understood without appreciating the
role of firms' strategic visions. It also shows that direct
measurement of the rate of technological change (as opposed to
traditional, indirect measures like patent counts and R&D
expenditure) is essential if changes in market structure are to be
understood. Theoretical arguments are developed through case
studies of some of the most innovative and fast moving industries
in the world, including software, micro-processors and
biotechnology.
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