Microcomputer Industry Research Articles

Double-row facility layout with replicate machines and split flows

This paper presents a new variant of the double row layout problem (DRLP) that features types of capacitated machines. This variant dramatically improves the fidelity with which the DRLP represents the complex production alternatives in many production environments, especially in the microcomputer industry. The problem consists of placing different classes of machines, each with multiple replicates, on either side of a central aisle. This is a common type of layout problem observed in many production and service environments. This work extends the DRLP literature by utilizing machine replicates in the layout. Multiple replicates of the same machine allow the product flow to split into multiple branches, each representing a parallel flow line. Flow splitting can improve machine utilization and reduces the number of machines needed. We also introduce machine sharing, which lets different products use the same machine. This eliminates the need for dedicated assignments of products to machines, which is a common assumption in the current literature. The consideration of re-entrant product flow, whereby each product can visit the same machine multiple times, represents another unique aspect of this research. The problem is formulated as a nonlinear mixed integer program. Due to the computational complexity of this problem a hierarchical optimization approach is developed and evaluated on test problems of various sizes. Computational results show that the proposed method produces consistent and high quality solutions across problem sizes.

The Infant Industry Argument: Case Study on the Brazilian Computer Industry

Countries have always looked for methods to improve the conditions of certain industries in order to increase their gross domestic production. Many have resorted to various trade protectionist policies in the form of quotas and tariffs to drastically reduce imports to develop the domestic industry. This notion of shielding a particular industry stems from the infant industry argument. This argument supports protective policies to develop a particular industry. The argument is considered to be controversial as economists are divided over whether to support the theory or not. This paper reviews the case of the Brazilian micro-computer industry from 1971 to 1990. It studies the policies employed by the government to reduce import dependency.

Oral History of Dov Frohman

Dov Frohman is an Israeli electrical engineer and businessman. In 1970, he invented the Electrically Programmable Read-Only Memory (EPROM), a key enabling technology for rapid development of microprocessor-based systems, from personal computers to industrial controls. Intel founder Gordon Moore called it “as important in the development of the microcomputer industry as the microprocessor itself.” Frohman was also responsible for establishing Intel's R&D and manufacturing presence in Israel, one of Intel's most productive and advanced design centers. Frohman is a nationally known figure in Israel.

Computer Music Network

The social climate and cultural atmosphere of the San Francisco Bay Area in the late 70's early 80's plus the emergence of the nascent microcomputer industry made for a social network and approach that fostered the creation of a new type of collaborative electronic music ensemble with techniques that have come to be known as “Computer Music Network”. A transformation from initial heterogeneous to a more homogeneous underlying paradigm has brought with it aesthetic questions about the reason and evolution of this new genre.

From the Editor's Desk

This issue features several articles that discuss different perspectives on evolving computer industry strategies. Specifically, the issue includes a comparison of the innovation strategies by Burroughs and the British Tabulating Machine (BTM) by Jeffrey Yost, two internal perspectives on important elements of IBM's strategy beyond innovation and production of computer hardware by Albert Endres and James W. Cortada, a history of Intel's strategic decisions regarding its position in the emerging microcomputing market from the 1970s by Zbigneiw Stachniak, and Patryk Wasiak's look at marketing strategies in the consumer-focused microcomputer industry of the 1980s.

The Best of Both Worlds? A History of Time-Shared Microcomputers, 1977–1983

This account of the evolution of time-shared microcomputers, often overlooked members of the microcomputer industry, looks at articles and advertisements that appeared in Byte magazine from 1977 to 1983. The author's quantitative and qualitative analysis reveals that time-shared microcomputers attempted to combine the best aspects of microcomputer and mini-computer/mainframe technologies and, for a time, were a considerable, important part of the microcomputer industry.

Nerds: A Case Study Of The PC Industry

This paper discusses the use of a PBS video, Triumph of the Nerds, as a video case study of the personal computer industry. The program traces the birth of the microcomputer industry through interviews with the founders of the industry, including Bill Gates, Paul Allen, Steve Jobs and Gordon Moore. The video is more than an entertaining look at the personal computer industry, but also provides numerous lessons on topics such as protecting intellectual property, strategic alliances, disruptive innovations, competitive strategy, marketing and entrepreneurship.

A MULTIDIMENSIONAL CONCEPTUALIZATION OF ENVIRONMENTAL VELOCITY.

Environmental velocity has emerged as an important concept but remains theoretically underdeveloped, particularly with respect to its multidimensionality. In response, we develop a framework that examines the variations in velocity across multiple dimensions of the environment (homology) and the causal linkages between those velocities (coupling). We then propose four velocity regimes based on different patterns of homology and coupling and argue that the conditions of each regime have important implications for organizations. Environmental velocity 1 has become an important concept for characterizing the conditions of organizational environments. Bourgeois and Eisenhardt (1988) introduced this concept to the management literature in their study of strategic decision making in the microcomputer industry. They described this industry as a “highvelocity environment”— one characterized by “rapid and discontinuous change in demand, competitors, technology and/or regulation, such that information is often inaccurate, unavailable, or obsolete” (Bourgeois & Eisenhardt, 1988: 816). From the perspective that the environment is a source of information that managers use to maintain or modify their organizations (Aldrich, 1979, Scott, 1981), velocity has important implications for organizations. Studies have found, for example, that success in high-velocity industries is related to fast, formal strategic decisionmaking processes (Eisenhardt, 1989; Judge & Miller, 1991); high levels of team and process

Hierarchical delays as a source of nominal price rigidities: evidence from the microcomputer industry

AbstractThe non‐market clearing models of New Keynesian macroeconomic theory rely heavily upon sticky prices to generate business cycle activity following monetary shocks. The dominant theoretical explanations for sticky prices assume a degree of market power in the representative firm (e.g. Mankiw, 1985. Quarterly J. Econ. 100(2): 529–538). Thus, an important element of empirical research is the exploration of sticky prices within more competitive industries. The importance of this analysis is in establishing the potential degree of price stickiness in a representative firm employed in a macroeconomic model. Among the many theoretical explanations of nominal rigidities are the existence of hierarchical delays (Blinder, 1991. Amer. Econ. Rev. 72: 334–348) and decision costs (Tommasi, 1992. Optimal Pricing, Inflation, And The Cost of Price Adjustment, 485–511). Both theories rely on the simple notion that managerial inefficiency, high costs of making decisions and sluggish transmission of information lead to price stickiness. This paper investigates the market for microcomputers in the United States from 1993 to 1995 finding strong evidence of nominal price rigidities attributable to hierarchical delays. Alternate explanations for these rigidities are explored and rejected. These prices are sticky in a monopolistically or workably competitive industry, which provides important additional support for the New Keynesian interpretation. Ordinary least squares, a Poisson count and negative binomial count models are employed in establishing the existence of hierarchical delays. Conclusions are offered regarding the appropriate selection of the characteristics of the representative firm in macroeconomic models. Copyright © 2007 John Wiley & Sons, Ltd.

Force distribution for double-walled carbon nanotubes and gigahertz oscillators

Advances in nanotechnology have led to the creation of many nano-scale devices and carbon nanotubes are representative materials to construct these devices. Double-walled carbon nanotubes with the inner tube oscillating can be used as gigahertz oscillators and form the basis of possible nano-electronic devices that might be instrumental in the micro-computer industry which are predominantly based on electron transport phenomena. There are many experiments and molecular dynamical simulations which show that a wave is generated on the outer cylinder as a result of the oscillation of the inner carbon nanotube and that the frequency of this wave is also in the gigahertz range. As a preliminary to analyze and model such devices, it is necessary to estimate accurately the resultant force distribution due to the inter-atomic interactions. Here we determine some new analytical expressions for the van der Waals force using the Lennard–Jones potential for general lengths of the inner and outer tubes. These expressions are utilized together with Newton’s second law to determine the motion of an oscillating inner tube, assuming that any frictional effects may be neglected. An idealized and much simplified representation of the Lennard–Jones force is used to determine a simple formula for the oscillation frequency resulting from an initial extrusion of the inner tube. This simple formula is entirely consistent with the existing known behavior of the frequency and predicts a maximum oscillation frequency occurring when the extrusion length is (L2 – L1)/2 where L1 and L2 are the respective half-lengths of the inner and outer tubes (L1 < L2).

Balancing vertical integration and strategic outsourcing: effects on product portfolio, product success, and firm performance

AbstractMost prior research has focused on vertical integration or strategic outsourcing in isolation to examine their effects on important performance outcomes. In contrast, we focus on the simultaneous pursuit of vertical integration and strategic outsourcing. Our baseline proposition is that balancing vertical integration and strategic outsourcing in the pursuit of taper integration enriches a firm's product portfolio and product success, and in turn contributes to competitive advantage and thus to overall firm performance. We derive a set of detailed hypotheses, and test them on a unique and fine‐grained panel of longitudinal data documenting over 3,500 product introductions in the global microcomputer industry. The results provide strong support for the notion that carefully balancing vertical integration and strategic outsourcing when organizing for innovation helps firms to achieve superior performance. Copyright © 2006 John Wiley &amp; Sons, Ltd.

Geography of Production Linkages in the Irish and Scottish Microcomputer Industry: The Role of Logistics

The economic crisis of the mid-1970s marked the transition from the traditional Fordist mode of industrial organization to one of time-based competition (TBC). It has been postulated that the rise of TBC will lead to an increase in local and regional production linkages. Part of the argument is that the associated search for logistical efficiency and the adoption of the just-in-time (JIT) principles will lead to closer buyer-supplier proximity. In this article, we test the relevance of this idea in a case study of the microcomputer hardware industry in Ireland and Scotland. Most of the data were collected during multiple interviews with subsidiaries of all global microcomputer assemblers with operations in one of the two countries. The study shows that rather than sourcing locally or regionally, the assemblers import the vast majority of their material inputs from regions outside Ireland and Britain, notably from the Far East, and that the inbound logistics pipelines of most components involve inventories, often hubbed in local warehouses. Such supply systems have been interpreted as pseudo-JIT, suboptimal inbound logistics systems that are organized on traditional Fordist principles. We argue that the logistics systems and the geography of the supply linkages should not be interpreted this way. Inbound inventories were tightly managed, leading to modest target buffer levels and high shipment frequencies. Even under JIT supply, the geographic configuration of production linkages and the details of logistics systems remain highly dependent on a range of contextual conditions and component characteristics. The findings of this study suggest that a strategy of building integrated vertical production clusters around subsidiaries of multinational enterprises is no longer suitable for Ireland and Scotland, at least not in the context of the microcomputer industry.

Institutional frameworks and technological paradigms in Japan: targeting computers, semiconductors, and software

By comparing the differences and similarities in the development of computers, semiconductors, and software within the single Japanese context, this article looks for patterns of fitness between different technological paradigms and institutional frameworks. Japan's postwar history suggests that a hybrid strategy of national champions and R&D consortia enabled the government to target computers and semiconductors through a policy of controlled competition and cooperation. Partly because of this public–private partnership, in the 1980s Japan's information technology industry established strong international competitiveness. The major force was a small group of large firms characterized by a high degree of vertical integration and a wide range of technologies and products. As the new paradigm of microcomputers emerged, however, Japan's advances in hardware provided little impetus for developing packaged software, and the country's strength in mainframes even constrained the growth of the microcomputer industry. In Japan, both the firms and the government overlooked the new trends of disintegrating complementary software from hardware and of developing microcomputers independent of mainframes and minicomputers. In addition, the industry structure of multiple computer champions led to a fragmented environment for hardware and software architectures. The prominence of Japan's large computer vendors also inhibited the growth of smaller independent software houses. In this new era, the country as a whole did not recognize in time new information rules such as de facto standards, network externalities, and increasing returns. The recent explosive growth of the Internet and multimedia represents another new paradigm of digital convergence. Japan's experiences in targeting computers, semiconductors, and software suggest that, to a significant extent, vertical integration just gives way to horizontal integration and government involvement to market mechanisms.

Software variety and hardware value: a case study of complementary network externalities in the microcomputer software industry

Abstract We estimate the effects of software provision on the valuation of hardware in the early microcomputer industry, covering the period 1981–1986. Since hardware and software technologies `co-evolve,' a discussion of the economic and technological relationships is provided to clarify the nature of the relationship between software variety and hardware price.

Measuring the Performance of a Protected Infant Industry: The Case of Brazilian Microcomputers

Until the beginnings of the Collor presidency in 1990, the Brazilian government strongly protected domestic producers of electronics goods. Using hedonic methods, the authors analyze systematic evidence of the performance of the Brazilian microcomputer industry and compare it with international standards. Their analysis highlights rapid rates of advance in Brazil but lower rates than potential international competition. Technical frontiers typically lagged price/performance practices in international markets by at least three years and by as much as five. Foregone buyer surplus due to protection had to be quite high, approaching 20 percent of domestic expenditure on microcomputers. Copyright 1995 by MIT Press.

Advances in Computer-Aided Well Test Interpretation

Summary Several different computer methods combine to constitute a computer-aided well-test interpretation. This paper compares some of the different approaches currently in use. Future directions are discussed, as are deconvolution, pressure derivatives, model recognition, nonlinear regression, and confidence intervals. Introduction Despite the feeling expressed several times over the past 40 years that well-test analysis had reached its peak development, an examination of recent advances shows continuous expansion in capability, with future improvement likely. The expansion in interpretation capability over the past decade arose mainly from the development of computer-aided techniques, which, although introduced 20 years ago, have come into use only recently. The broad application of computer-aided interpretation originated with the improvement of the methodologies and continued with the expansion in computer access and capability that accompanied the explosive development of the microcomputer industry. This paper focuses on the different pieces of the methodology that combine to constitute a computer-aided interpretation and attempts to compare some of the approaches currently used. Future directions of the approach are also discussed. The separate areas discussed are deconvolution, pressure derivatives, model recognition, nonlinear regression, and confidence intervals. Background During the 1970's and 1980's, mathematical and numerical techniques provided new well-test solutions for a wide variety of reservoir configurations, such as fractures, layered reservoirs, and multiple porosities. The complexity of these models and the large number of parameters that they contain limited their analysis by traditional graphical methods. Of the two main types of graphical analyses, straight-line methods (such as Horner plots) can provide estimates of, at most, two unknowns (from the slope and intercept of the line). Type-curve methods can usually provide only three parameters--one from each of the two axes and one from a curve from the family of curves used. In the process of seeking a method to match more unknowns, work began on the use of nonlinear regression. Earlougher and Kersch's 1972 paper was key in this area. That and later work showed that nonlinear regression could not only match reservoir models with more than a few parameters, but also provide several significant advantages over graphical matching. One important advantage was the illustration of the use of confidence intervals, another was the application of nonlinear regression to reservoir responses that resulted from complex (variable-rate) impulses. Matching complex models and complex impulses made up the challenge in and motivation for computer-aided analysis.

Incorporating Reasoning by Analogy as a DSS Tool

This paper reports a study that incorporated a reasoning by analogy (RBA) system into a business simulation game of the microcomputer industry. The RBA system was designed to support a manager’s intuitionand judgement by facilitating the use of analogies. Users search for comparable (i.e., analogous) firms througha simple pattern‐matching routine built into the system. We argue for including RBA tools within decision support systems in order to facilitate analogical reasoning by decision makers. The study results support the conclusion that implementation of RBA systems significantly improves decision making effectiveness. The design and implementation of an RBA system, including the environmental scanning required to create the databases needed to support the system,is described and implications for practitioners and designers are discussed.

Strategies for Survival in the Microcomputer Industry 1985-1989

Investigation of the population of microcomputer firms that competed in the turbulent period of 1985 to 1989 raises questions about population ecologists' assumption of strategic inertia and calls into question the assumption of strategic interdependence advocated by strategic-management theorists and industrial-organization economists. Classification of the firms in the microcomputer industry indicates consolidation from six to four strategic groups, with a consequent reduction in strategic diversity. Many survivors changed strategies; however, firms with broader-scope strategies were more likely to be successful.

Technology measurement and the appraisal of information technology

The dynamic nature of information can prove troublesome to individuals given the responsibility for managing their acquisition and deployment. Not only is there stream of new products, but existing products are periodically enchanced to reflect technical advances, competitors' actions, or both. The net result is that the general manager and the information systems manager alike face on overwhelming set of alternative product choices. This paper illustrates a relatively simple approach to technology measurement, a systematic procedure for assessing the state of the art of industry. Technology measurement enables managers to better evaluate product choices. Given its generally high level of managerial awareness and interest, the microcomputer industry was selected as the vehicle for illustrating this approach to technology measurement.

External Economies and Economic Progress: The Case of the Microcomputer Industry

The following article provides a thorough chronicle of the microcomputer industry. That industry is a striking case, in which industrial growth took place through the creation of “external” capabilities—that is, capabilities produced by and residing in a specialized market network rather than in large organizations enjoying internal economies of scale and scope. In the microcomputer industry, the most successful products were those that took the greatest advantage—and allowed users to take the greatest advantage—of the market; and the greatest failures occurred when business enterprises bypassed the external network and attempted to rely significantly on internal capabilities.