TY - JOUR
T1 - How technological change affects power relations in global markets
T2 - remote developers in the console and mobile games industry
AU - Parker, Rachel
AU - Cox, Stephen
AU - Thompson, Paul
N1 - Rachel Parker, Stephen Cox, Paul Thompson, 2014. The definitive, peer-reviewed and edited version of this article is published in Environment and Planning A, 46(1), 168–185, DOI: 10.1068/a45663
PY - 2014/1
Y1 - 2014/1
N2 - This paper focuses on Australian development firms in the console and mobile games industry in order to understand how small firms in a geographically remote and marginal position in the global industry are able to relate to global firms and capture revenue share. This paper shows that, while technological change in the games industry has resulted in the emergence of new industry segments based on transactional rather than relational forms of economic coordination, in which we might therefore expect less asymmetrical power relations, lead firms retain a position of power in the global games entertainment industry relative to remote developers. This has been possible because lead firms in the emerging mobile devices market have developed and sustained bottlenecks in their segment of the industry through platform competition and the development of an intensely competitive ecosystem of developers. Our research shows the critical role of platform competition and bottlenecks in influencing power asymmetries within global markets.
AB - This paper focuses on Australian development firms in the console and mobile games industry in order to understand how small firms in a geographically remote and marginal position in the global industry are able to relate to global firms and capture revenue share. This paper shows that, while technological change in the games industry has resulted in the emergence of new industry segments based on transactional rather than relational forms of economic coordination, in which we might therefore expect less asymmetrical power relations, lead firms retain a position of power in the global games entertainment industry relative to remote developers. This has been possible because lead firms in the emerging mobile devices market have developed and sustained bottlenecks in their segment of the industry through platform competition and the development of an intensely competitive ecosystem of developers. Our research shows the critical role of platform competition and bottlenecks in influencing power asymmetries within global markets.
KW - global value chains
KW - small and medium-sized enterprises
KW - standards competition
KW - platform competition
KW - market power
UR - http://www.envplan.com/A.html
U2 - 10.1068/a45663
DO - 10.1068/a45663
M3 - Article
VL - 46
SP - 168
EP - 185
JO - Environment and Planning A
JF - Environment and Planning A
SN - 0308-518X
IS - 1
ER -