ABSTRACT

This chapter analyses the business model, the profitability, and the economic performance of the General Purpose Technology (GPT) provider by presenting an in-depth and detailed case history of the processes involved in the commercialization of a GPT. Using multiple sources, it documents the financial viability and sustainability of the business model of the GPT provider in the long run. Hence, this study contributes to a wider research agenda that aims to consolidate the understanding of GPTs, the conditions for their emergence, their organizational implications inside firms, and the effects on firm behaviour and performance. The chapter discusses the commercialization strategies in three potential large application sectors buildings automation, home automation, and industrial controls. These application sectors are interesting case studies to analyse because they have attracted attention since the commercial launch of LonWorks and have continued to play an important role in the subsequent stage of Echelon's existence.