Industry Evolution

Industry Evolution

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 Overview of Research on Industry Evolution

Porter’s (1980)
Malerba and Orsenigo (1996)

Helps to explain changes in

economic, social, and cultural
landscape (Durand, 2006)

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Porter (1980)

Industries evolve because some forces are

in motion that creates incentives and
pressure for change

Industry fragmentation has been overcome

by franchising

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Porter (1980)
About this template

Industry Analysis Framework

-has been the most prominent contribution
to our understanding of industry evolution in the
strategy field

-severely criticised for not ‘explicitly

accounting for the role of government, except when
government is a supplier or buyer’
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Porter, 1980; Winter,
About this template 2005

Importance of Industry evolution helps to build

an understanding of structural and architectural
changes occuring in an industry over time

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Garud & Van detemplate
About this Ven (2002)

Theories originating from disciplines has been

exploited to explain the nature of change in
industries and organisations

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Evolution
- Implies changes
- The work carried out has been
cross-sectional (Baron 2003)

- There is limited evidence of

research of industry over time
(Malerba and Orsenigo 1996; Quinn
& Leavy, 2005; Quin Murray 2007)

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Klepper 1996, 1997;
About Abernathy Utterback , 1975
this template

Scholars have built on the knowledge

on the industry evolution particularly
in respect to the dynamic model: the
industry life cycle

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Stephen Klepper 1996

Suggested there is limited empirical

evidence in many industries. The
emergence of industrial organisations
economics which brought with it the
primacy of static analysis in the study of
industry structures; market positioning,
comparison

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During 1970 & 1980
New influences entered in the field as
work from.

Malerba & Orsenigo 1996

Pennied one of the foundational works
on the evolution of industries

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Major Gaps in their research:

• A lack of exploration of structural dynamics or

structural evolution
• A focus on the manufacturing sector with little
research on service or distributive industries
• A lack of dynamic model of industry evolution
• A lack of historical perspective

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Major Gaps in their research:

• The need to a wider definition of industry

bounderies
• The role of institutions in industry evolution
• The relationship between firm level activity and
industry evolution
• The need for finer grained empirical studies

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Dynamic Capability
- is the capacity of an organization to purposefully
create, extend or modify its resources.

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15 years since the publicationof ‘Dynamics and
Evolution of Industries’ research, it has produced a
body of work through which some of the gaps
identified had been address

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