Increasing returns and marketing strategy in the twenty‐first century: Nokia versus Microsoft versus Linux

Purpose: The purpose of this paper is to develop further the concept of increasing returns in technology industries, including social and critical mass factors. The paper applies this framework to the twenty‐first century with the example of the three‐way competition among Nokia, Microsoft and Linux for the global mobile software standards competition.

Design/methodology/approach: A multidisciplinary and conceptual methodology was used, integrating theories from economics, marketing, technology, innovation, sociology and psychology.

Findings: The study finds that increasing returns frameworks need to combine technology as well as social and psychology effects to reflect the dynamics of global competition in the twenty‐first century.

Originality/value: This paper illustrates how a multidisciplinary and integrated approach to analysing increasing returns and a critical mass framework can provide a richer and more holistic analysis of global competition, including Nokia, Microsoft and Linux, in the global competition for mobile software in the twenty‐first century.