Parallel search: Simultaneous development of competing technologies

Much research has sought to explain the dynamics that govern the era of ferment prior to the emergence of a dominant technology in a new industry. While research has mostly assumed that in this competitive context firms focus search efforts on a single technological alternative at a time, evidence indicates that firms may also hedge their bets by searching in parallel. Despite a rich body of work on organizational search processes that has accumulated within the strategic management literature, the dimension of concurrency in search activities has remained underdeveloped and little understood. In this dissertation I combine research on organizational search and technological evolution to understand the antecedents and consequences of a parallel search strategy. My empirical investigations are situated in the context of the emergence of two novel rechargeable battery technologies in the early 1990s -- nickel-metal hydride and lithium ion. In examining the antecedents of parallel search I focus on the role of competition under technological uncertainty during the era of ferment. Findings show that the choice of search strategy -- parallel versus focused -- depends on the strength of technological leadership of the firm and the degree of R&D portfolio similarity among firms. The consequences of pursuing a parallel search strategy are examined in terms of firm survival and knowledge generation in the dominant technology following its emergence. I find that while parallel search increases survival likelihood post-dominance, it offered knowledge generation advantages only to firms that entered during a short time-window prior to the emergence of the dominant technology. As a whole, this dissertation advances our understanding of the dynamics of technological competition in emerging industries by providing insight into the impact of competition on R&D portfolio choices.