IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v28y2022i4s1075425322000217.html
   My bibliography  Save this article

The Digital Challenge for Multinational Mobile Network Operators. More marginalization or rejuvenation?

Author

Listed:
  • Gooderham, Paul N.
  • Elter, Frank
  • Pedersen, Torben
  • Sandvik, Alexander Madsen

Abstract

Multinational mobile network operators (MNOs) rapidly emerged in the early 1990s and for a decade and a half were the dominant actors in their industry. We analyze the development and competitiveness of a typical MNO, Telenor. With the introduction of 4G in 2010, we show that Telenor, like other MNOs largely failed to respond to the opportunity that connectivity provided to develop digital services. Instead, these were developed by technology platform companies such as Amazon, Google and Microsoft. Telenor became a marginalized supplier of standardized internet connectivity. We argue that the ‘decade of lost opportunity’ (2010–2020) for Telenor was a product of a lack of ‘recombinant firm-specific advantages’ (FSARs). With the launch of 5G, an emerging global digital infrastructure, this sidelining is set to intensify unless Telenor responds to this new opportunity by developing B2B digital services. We analyze the FSARs that are necessary for a successful transition of capturing the value that 5G provides and the degree to which they are present, or potentially present, in Telenor.

Suggested Citation

  • Gooderham, Paul N. & Elter, Frank & Pedersen, Torben & Sandvik, Alexander Madsen, 2022. "The Digital Challenge for Multinational Mobile Network Operators. More marginalization or rejuvenation?," Journal of International Management, Elsevier, vol. 28(4).
    • Handle: RePEc:eee:intman:v:28:y:2022:i:4:s1075425322000217
    DOI: 10.1016/j.intman.2022.100946
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425322000217
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intman.2022.100946?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alan M. Rugman & Alain Verbeke, 2005. "Subsidiary Specific Advantages in Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 6, pages 77-90, Edward Elgar Publishing.
    2. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    3. Lee, Jong Min & Narula, Rajneesh & Hillemann, Jenny, 2021. "Unraveling asset recombination through the lens of firm-specific advantages: A dynamic capabilities perspective," Journal of World Business, Elsevier, vol. 56(2).
    4. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    5. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    6. Sidney G. Winter & Gabriel Szulanski, 2001. "Replication as Strategy," Organization Science, INFORMS, vol. 12(6), pages 730-743, December.
    7. Keith D Brouthers & Kim Dung Geisser & Franz Rothlauf, 2016. "Explaining the internationalization of ibusiness firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(5), pages 513-534, June.
    8. Lehr, William & Queder, Fabian & Haucap, Justus, 2021. "5G: A new future for Mobile Network Operators, or not?," Telecommunications Policy, Elsevier, vol. 45(3).
    9. MB Sarkar & S Tamer Cavusgil & Preet S Aulakh, 1999. "International Expansion of Telecommunication Carriers: The Influence of Market Structure, Network Characteristics, and Entry Imperfections," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 361-381, June.
    10. Kent Eriksson & Jan Johanson & Anders Majkgård & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 337-360, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    2. Victor Cui & Rajneesh Narula & Dana Minbaeva & Ilan Vertinsky, 2022. "Towards integrating country- and firm-level perspectives on intellectual property rights," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1880-1894, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Danchi Tan & Weichieh Su & Joseph T. Mahoney & Yasemin Kor, 2020. "A review of research on the growth of multinational enterprises: A Penrosean lens," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 498-537, June.
    2. Jan-Erik Vahlne & Waheed Akbar Bhatti, 2019. "Relationship Development: A Micro-Foundation for the Internationalization Process of the Multinational Business Enterprise," Management International Review, Springer, vol. 59(2), pages 203-228, April.
    3. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    4. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    5. Parente, Ronaldo C. & Geleilate, José-Mauricio G. & Rong, Ke, 2018. "The Sharing Economy Globalization Phenomenon: A Research Agenda," Journal of International Management, Elsevier, vol. 24(1), pages 52-64.
    6. Oh, Chang Hoon & Kim, Minyoung & Shin, Jiyoung, 2019. "Paths and geographic scope of international expansion across industries," International Business Review, Elsevier, vol. 28(3), pages 560-574.
    7. José Plá Barber & Cristina Villar & Luis Silva Domingo, 2015. "Parenting MNC networks through springboard subsidiaries: a dynamic model of evolution," Documentos de Investigación 100, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    8. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    9. Schmidt, Heiko M. & Santamaria-Alvarez, Sandra Milena, 2022. "Routines in International Business: A semi-systematic review of the concept," Journal of International Management, Elsevier, vol. 28(2).
    10. Chang, Sungyong & Park, Sanghyun, 2021. "Borders of Network Effects and Early Internationalization as a Latecomer Strategy," SocArXiv d74he, Center for Open Science.
    11. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    12. Carney, Michael & Dieleman, Marleen & Taussig, Markus, 2016. "How are institutional capabilities transferred across borders?," Journal of World Business, Elsevier, vol. 51(6), pages 882-894.
    13. Ahsan, Mujtaba & Fernhaber, Stephanie A., 2019. "Multinational Enterprises: Leveraging a Corporate International Entrepreneurship Lens for New Insights Into Subsidiary Initiatives," Journal of International Management, Elsevier, vol. 25(1), pages 51-65.
    14. Sinéad Monaghan & Esther Tippmann, 2018. "Becoming a multinational enterprise: Using industry recipes to achieve rapid multinationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 473-495, May.
    15. Randolph Luca Bruno & Riccardo Crescenzi & Saul Estrin & Sergio Petralia, 2022. "Multinationals, innovation, and institutional context: IPR protection and distance effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1945-1970, December.
    16. Liang Chen & Noman Shaheer & Jingtao Yi & Sali Li, 2019. "The international penetration of ibusiness firms: Network effects, liabilities of outsidership and country clout," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 172-192, March.
    17. Cao, Lanlan & Navare, Jyoti & Jin, Zhongqi, 2018. "Business model innovation: How the international retailers rebuild their core business logic in a new host country," International Business Review, Elsevier, vol. 27(3), pages 543-562.
    18. Nuno Calheiros-Lobo & José Vasconcelos Ferreira & Manuel Au-Yong-Oliveira, 2023. "SME Internationalization and Export Performance: A Systematic Review with Bibliometric Analysis," Sustainability, MDPI, vol. 15(11), pages 1-36, May.
    19. Svante Andersson & Natasha Evers, 2015. "International opportunity recognition in international new ventures—a dynamic managerial capabilities perspective," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 260-276, September.
    20. Osabutey, Ellis L.C. & Papanastassiou, Marina & Jin, Zhongqi & Navare, Jyoti & Agyapong, Ahmed, 2023. "Revisiting FSAs and CSAs in Sub-Saharan Africa: Evidence from Ghanaian Firms," International Business Review, Elsevier, vol. 32(4).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:28:y:2022:i:4:s1075425322000217. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.