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Centrino and the Restructuring of Wi-Fi Supply

2020; RELX Group (Netherlands); Linguagem: Inglês

10.2139/ssrn.3683638

1556-5068

Roberto Fontana, Shane Greenstein,

Outsourcing and Supply Chain Management

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’s 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.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.