Product convergence perspective on collaboration success factors

Convergence represents an important trend in today’s business environment and calls for system-wide perspective on interactions between technology, product, and strategy and operations management. In relation to the information and communications technology industry, technological innovations and changes in consumer preferences have led technologies and product features to partially merge. Two types of product-based industry convergence are identified in the literature: product substitution and product complementarity. To adapt to new business conditions, companies need to collaborate to get access to new competencies and knowledge for converged product development. This paper, using personal interviews as the research method, contributes to the existing body of knowledge on convergence and intercompany collaboration from an operational management level point of view by determining and comparing the main success factors needed for partnering under product convergence types. The differentiating factors are product features, relative product advantages for the customer and determining the company position in the industry value network.