This paper shows how the vertical-to-horizontal transition in the computer industry was an organizational response to a change in economic rewards brought by the competing technologies of rationalized step processes and open platform systems. The spread of modular architectures—and the rapid pace of change in semiconductor technology—shifted the balance of rewards away from predictability toward flexibility.
Explaining the Vertical-to-Horizontal Transition in the Computer Industry
This paper shows how the vertical-to-horizontal transition in the computer industry was an organizational response to a change in economic rewards brought by the competing technologies of rationalized step processes and open platform systems. The spread of modular architectures—and the rapid pace of change in semiconductor technology—shifted the balance of rewards away from predictability toward flexibility.