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2021 | OriginalPaper | Chapter

4. Key Factors in the Success of Platform Strategy in Global Ecosystems: An Empirical Study on the Semiconductor Manufacturing Equipment Industry

Author : Hirofumi Tatsumoto

Published in: Platform Strategy for Global Markets

Publisher: Springer Singapore

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Abstract

This chapter examines the effectiveness of the competitive strategies of platform firms using transaction data from the semiconductor manufacturing equipment industry. For a long time, the firms in this industry had secured their competitive advantage by means of product strategies

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previous chapter Strategic Standardization and Global Ecosystem: GSM Mobile Phone Diffusion in China

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The interview results are summarized in Tomita and Tatsumoto (2008), which also includes additional sessions of the 2008 survey.

JEIDA stands for Japan Electronic Industry Development Association, JSNA for Japan Society of Newer Metals, SIRIJ for Semiconductor Industry Research Institute Japan, EIAJ for Electronic Industries Association of Japan and SEAJ for Semiconductor Equipment Association of Japan.

According to annual reports published by Tokyo Electron, a major semiconductor manufacturing equipment provider, its sales of products compatible with the 300 mm standard exceeded 50% of the total revenue of its semiconductor equipment division in 2003 (Tokyo Electron 2003).

This study used the igraph package of statistical software R (Csardi and Nepusz 2006) to create transaction networks for each year, consisting of semiconductor manufacturers and semiconductor manufacturing equipment providers, based on the transaction data previously mentioned. Betweenness centrality was then calculated assuming the transaction networks to be nondirectional graphs, after deleting duplicated ties.

While transaction networks themselves are unidirectional, information networks created along with them are bidirectional (nondirectional). This is why the transaction networks were regarded as nondirectional data in this research. Importantly, though it is a small issue, I deleted duplicated ties, which are regarded as giving weighting to the exchanged information. Hence, betweenness centrality can take duplicated ties into account in some models. In this study, however, betweenness centrality was calculated based on networks with duplicated ties removed considering that (i) betweenness centrality should explain only the arrival of information and (ii) another variable (nProc) in the regression models gives the weighting function.

Statistics software R was used to estimate the regression models (R Development Core Team 2011).

Regarding community clustering, however, the data containing duplicated ties were used, since the information on weighted transaction ties is helpful for a clearer analysis.

The spinglass algorithm was used. Calculations were performed using the igraph package of the statistics software R.

Functional cartography is often used for depicting complicated genetic networks in the field of biology (Guimerà and Amaral 2005). For the actual algorithm, the websites by Mr. Takemoto (Takemoto 2013) were used as a reference. See Appendix 3 for details on the nodes function methods.

Note that the situation in a certain year is reported in the following year’s annual report.

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Title: Key Factors in the Success of Platform Strategy in Global Ecosystems: An Empirical Study on the Semiconductor Manufacturing Equipment Industry
Author: Hirofumi Tatsumoto
Publisher: Springer Singapore
Book: Platform Strategy for Global Markets
Print ISBN: 978-981-336-788-3

Electronic ISBN: 978-981-336-789-0

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-981-33-6789-0_4