Open standard: role of externalities and impact on the industry structure

Conceding a part of property rights appears counter-intuitive in regards to the Porterian and Resources-Based frameworks. However industrial economics literature and recent examples suggest that this strategy is fruitful to develop network externalities and consequently to impose a standard in network industries. This article explores the role of the sponsor and the impacts of an open property rights strategy on the industry structure. Drawing on the empirical data collected from the U.S. Roleplaying Game industry, our results reveal that: 1) the open approach promoted by a sponsor does not work effectively without network industries specific resources; 2) this strategy induces new entries that benefits to the sponsor; 3) the firms in the industry do not change their technological trajectories except those which are well endowed with resources.