When to broadcast intentions and when to exploit relationships: Information sharing strategies in the second generation wireless standards contest

This study offers a new approach to understanding the diffusion of a new technology; specifically on the process of information sharing and its influence on a market based standards contest. Since diffusion relies upon adopting firms to gather information and learn about a new technology prior to adoption, communication of a technologys attributes and benefits is essential to the overall process of diffusion. The flow of information from sponsors to adopters is an influential action that serves to impact both the speed and degree of adoption of a new technology and can influence the outcome of market based standards contest. I explore these issues through a case analysis of the wireless phone industry and the 2G standards contest in the United States by studying the information sharing actions and events of two technology sponsors; Ericsson and Qualcomm. I develop a model of information sharing that identifies how aspects of timing, message, media, and target of influence combine to form two primary types of information sharing; cascade and broadcast. This model draws on concepts from the relevant body of literature on standards contests, social networks and communication theories.