Dominant design selected by users: Dynamic interaction and convergence of users

Abstract

Dominant design is ultimately shaped by market forces, and users serve as the primary driver. Previous research has revealed that dominant design is a turning point for innovation phases and firm survival. While existing research has examined dominant design from the vantage point of technology, institution, or other market factors, there remains a dearth of studies that delve into the user-driven perspective on dominant design, in which users have presented significant value in the digital era. As user-driven innovation becomes increasingly prevalent, it is impossible for dominant design to avoid the influence of users. Therefore, exploring dominant design must incorporate a user-driven perspective to account for the active agency users hold in the digital era. In this article, we develop a dynamic user interaction model to elucidate how users drive the emergence of dominant design. Specifically, leveraging simulations, we modeled a spectrum of evolution pathways for user preferences, reflecting the complex interaction environments arising from digitalization. The simulations illustrate how dominant design emergences hinge on individual micro-level interactions in undifferentiated competition, grounded in opinion dynamics theory. The results indicate that interaction dynamics, sequence, and frequency disrupt the equilibrium of undifferentiated competition, increasing the likelihood of occasional events leading to a dominant design in this context. This study aims to shed light on the proactive role of users in affecting the dominant design and the subsequent generation of new user values stemming from it.