IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v90y2015ipap346-354.html
   My bibliography  Save this article

Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators

Author

Listed:
  • Ghezzi, Antonio
  • Cortimiglia, Marcelo Nogueira
  • Frank, Alejandro Germán

Abstract

The mobile telecommunications industry is highly dynamic. Strategic, marketing and technological disruptive changes are the norm in this industry. In such a context, strategy formulation and implementation is a challenge for mobile network operators (MNOs). The aim of this study is to propose an interpretative framework to support MNO's strategic decision making in a dynamic competitive context characterized by disruptive changes in technology and business dimensions. The proposed framework was applied in an explorative multiple case study conducted on the four MNOs operating in Italy. Data collection involved semi-structured interviews with seven top and middle managers of each company. The application illustrates how the proposed framework allowed the identification of drivers for potentially disruptive change and their implications on Italian MNOs' business models. The research also highlights the main strategic routes that Italian MNOs have at their disposal to face the turbulent competitive times. Although the specific issues reported relate to the Italian context, it can be argued that they are reasonably representative of most Western markets.

Suggested Citation

  • Ghezzi, Antonio & Cortimiglia, Marcelo Nogueira & Frank, Alejandro Germán, 2015. "Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 346-354.
  • Handle: RePEc:eee:tefoso:v:90:y:2015:i:pa:p:346-354
    DOI: 10.1016/j.techfore.2014.09.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162514002765
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2014.09.006?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. Tilson, David & Lyytinen, Kalle, 0. "The 3G transition: Changes in the US wireless industry," Telecommunications Policy, Elsevier, vol. 30(10-11), pages 569-586, November.
    2. West, Joel & Mace, Michael, 0. "Browsing as the killer app: Explaining the rapid success of Apple's iPhone," Telecommunications Policy, Elsevier, vol. 34(5-6), pages 270-286, June.
    3. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    4. Madjdi, Farsan & Hüsig, Stefan, 2011. "The response strategies of incumbent mobile network operators on the disruptive potential of public W-LAN in Germany," Telecommunications Policy, Elsevier, vol. 35(6), pages 555-567, July.
    5. Bourreau, Marc & Dogan, Pinar, 2001. "Regulation and innovation in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 25(3), pages 167-184, April.
    6. Mazzoni, Clelia & Castaldi, Laura & Addeo, Felice, 0. "Consumer behavior in the Italian mobile telecommunication market," Telecommunications Policy, Elsevier, vol. 31(10-11), pages 632-647, November.
    7. Carl Shapiro, 1989. "The Theory of Business Strategy," RAND Journal of Economics, The RAND Corporation, vol. 20(1), pages 125-137, Spring.
    8. Lukasz Grzybowski, 2005. "Regulation of Mobile Telephony across the European Union: An Empirical Analysis," Journal of Regulatory Economics, Springer, vol. 28(1), pages 47-67, July.
    9. Weber, Arnd & Haas, Michael & Scuka, Daniel, 2011. "Mobile service innovation: A European failure," Telecommunications Policy, Elsevier, vol. 35(5), pages 469-480, June.
    10. Shin, Dong-Hee, 2012. "What makes consumers use VoIP over mobile phones? Free riding or consumerization of new service," Telecommunications Policy, Elsevier, vol. 36(4), pages 311-323.
    11. Christensen, Clayton M. & Rosenbloom, Richard S., 1995. "Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network," Research Policy, Elsevier, vol. 24(2), pages 233-257, March.
    12. Fernández, Zulima & Usero, Belén, 2009. "Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers," Telecommunications Policy, Elsevier, vol. 33(7), pages 339-347, August.
    13. Maitland, Carleen F. & Bauer, Johannes M. & Westerveld, Rudi, 0. "The European market for mobile data: evolving value chains and industry structures," Telecommunications Policy, Elsevier, vol. 26(9-10), pages 485-504, October.
    14. M. Bourreau & P. Dogan, "undated". "Innovation and Regulation in the Telecommunications Industry," Working Paper 33652, Harvard University OpenScholar.
    15. Zhang, Jing & Liang, Xiong-Jian, 2011. "Business ecosystem strategies of mobile network operators in the 3G era: The case of China Mobile," Telecommunications Policy, Elsevier, vol. 35(2), pages 156-171, March.
    16. Buellingen, Franz & Woerter, Martin, 2004. "Development perspectives, firm strategies and applications in mobile commerce," Journal of Business Research, Elsevier, vol. 57(12), pages 1402-1408, December.
    17. Funk, Jeffrey L., 0. "The emerging value network in the mobile phone industry: The case of Japan and its implications for the rest of the world," Telecommunications Policy, Elsevier, vol. 33(1-2), pages 4-18, February.
    18. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    19. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    20. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    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. Ghezzi, Antonio & Gastaldi, Luca & Lettieri, Emanuele & Martini, Antonella & Corso, Mariano, 2016. "A role for startups in unleashing the disruptive power of social media," International Journal of Information Management, Elsevier, vol. 36(6), pages 1152-1159.
    2. Tomás F. González-Cruz & Dolores Botella-Carrubi & C. M. Martínez-Fuentes, 2020. "The effect of firm complexity and founding team size on agile internal communication in startups," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1101-1121, September.
    3. Asimakopoulos, Grigorios & Whalley, Jason, 2017. "Market leadership, technological progress and relative performance in the mobile telecommunications industry," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 57-67.
    4. Trabucchi, Daniel & Talenti, Luca & Buganza, Tommaso, 2019. "How do Big Bang Disruptors look like? A Business Model perspective," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 330-340.
    5. Wang, Juite & Lai, Jung-Yu & Chang, Chih-Hsin, 2016. "Modeling and analysis for mobile application services: The perspective of mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 146-163.
    6. Gerpott, Torsten J. & Meinert, Phil, 2016. "The impact of mobile Internet usage on mobile voice calling behavior: A two-level analysis of residential mobile communications customers in Germany," Telecommunications Policy, Elsevier, vol. 40(1), pages 62-76.
    7. Gerpott, Torsten J. & Ahmadi, Nima, 2015. "Determinants of willingness to look for separate international roaming services—An empirical study of mobile communication customers in Germany," International Journal of Information Management, Elsevier, vol. 35(2), pages 192-203.
    8. Ghezzi, Antonio, 2019. "Digital startups and the adoption and implementation of Lean Startup Approaches: Effectuation, Bricolage and Opportunity Creation in practice," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 945-960.
    9. Baoliang Hu & Tao Zhang & Shuai Yan, 2020. "How Corporate Social Responsibility Influences Business Model Innovation: The Mediating Role of Organizational Legitimacy," Sustainability, MDPI, vol. 12(7), pages 1-18, March.
    10. Zhang, Hongfang & Xiao, Huilin & Wang, Yanling & Shareef, Mahmud A. & Akram, Muhammad Shakaib & Goraya, M. Awais Shakir, 2021. "An integration of antecedents and outcomes of business model innovation: A meta-analytic review," Journal of Business Research, Elsevier, vol. 131(C), pages 803-814.
    11. Arash Rezazadeh & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 12/2018, NIPE - Universidade do Minho.
    12. Lungu Miruna Florina, 2018. "Achieving strategic agility through business model innovation. The case of telecom industry," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 12(1), pages 557-567, May.
    13. Ghezzi, Antonio & Cavallo, Angelo, 2020. "Agile Business Model Innovation in Digital Entrepreneurship: Lean Startup Approaches," Journal of Business Research, Elsevier, vol. 110(C), pages 519-537.
    14. Frank, Alejandro Germán & Cortimiglia, Marcelo Nogueira & Ribeiro, José Luis Duarte & Oliveira, Lindomar Subtil de, 2016. "The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies," Research Policy, Elsevier, vol. 45(3), pages 577-592.
    15. Gao, Yang & Ge, Baoshan & Lang, Xiangxiang & Xu, Xiaobo, 2018. "Impacts of proactive orientation and entrepreneurial strategy on entrepreneurial performance: An empirical research," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 178-187.
    16. Chengbin, Wang & Hongbin, Wang & Min, Dai & Yongyan, Fang, 2022. "Lean Startup Approaches(LSAs): Convergence, Integration and Improvement," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    17. Kilkki, Kalevi & Mäntylä, Martti & Karhu, Kimmo & Hämmäinen, Heikki & Ailisto, Heikki, 2018. "A disruption framework," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 275-284.
    18. María A. Quintás & Ana I. Martínez-Senra & Antonio Sartal, 2018. "The Role of SMEs’ Green Business Models in the Transition to a Low-Carbon Economy: Differences in Their Design and Degree of Adoption Stemming from Business Size," Sustainability, MDPI, vol. 10(6), pages 1-20, June.
    19. Marcon, Érico & Le Dain, Marie-Anne & Frank, Alejandro G., 2022. "Designing business models for Industry 4.0 technologies provision: Changes in business dimensions through digital transformation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    20. Wiprächtiger, David & Narayanamurthy, Gopalakrishnan & Moser, Roger & Sengupta, Tuhin, 2019. "Access-based business model innovation in frontier markets: Case study of shared mobility in Timor-Leste," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 224-238.
    21. Zhu, Lin & Cunningham, Scott W., 2022. "Unveiling the knowledge structure of technological forecasting and social change (1969–2020) through an NMF-based hierarchical topic model," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    22. Specht, Jan Martin & Madlener, Reinhard, 2019. "Energy Supplier 2.0: A conceptual business model for energy suppliers aggregating flexible distributed assets and policy issues raised," Energy Policy, Elsevier, vol. 135(C).

    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. Gao, Xudong & Liu, Jianxin, 2012. "Catching up through the development of technology standard: The case of TD-SCDMA in China," Telecommunications Policy, Elsevier, vol. 36(7), pages 531-545.
    2. Gao, Xudong & Liu, Jianxin, 2012. "Reprint of: Catching up through the development of technology standard: The case of TD-SCDMA in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 817-831.
    3. Bruce Rasmussen, 2010. "Innovation and Commercialisation in the Biopharmaceutical Industry," Books, Edward Elgar Publishing, number 13680.
    4. Anna-Greta Nyström & Miia Mustonen, 2017. "The dynamic approach to business models," AMS Review, Springer;Academy of Marketing Science, vol. 7(3), pages 123-137, December.
    5. Zhang, Jing & Liang, Xiong-jian, 2012. "Promoting green ICT in China: A framework based on innovation system approaches," Telecommunications Policy, Elsevier, vol. 36(10), pages 997-1013.
    6. Giovanni. Gavetti & Daniel A. Levinthal, 2004. "50th Anniversay Article: The Strategy Field from the Perspective of Management Science: Divergent Strands and Possible Integration," Management Science, INFORMS, vol. 50(10), pages 1309-1318, October.
    7. Bauer, Johannes M. & Shim, Woohyun, 2012. "Regulation and digital innovation: Theory and evidence," 23rd European Regional ITS Conference, Vienna 2012 60364, International Telecommunications Society (ITS).
    8. Dahlander, Linus & Wallin, Martin W., 2006. "A man on the inside: Unlocking communities as complementary assets," Research Policy, Elsevier, vol. 35(8), pages 1243-1259, October.
    9. 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.
    10. Ansari, Shahzad (Shaz) & Krop, Pieter, 2012. "Incumbent performance in the face of a radical innovation: Towards a framework for incumbent challenger dynamics," Research Policy, Elsevier, vol. 41(8), pages 1357-1374.
    11. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    12. Elias Carayannis & Stavros Sindakis & Christian Walter, 2015. "Business Model Innovation as Lever of Organizational Sustainability," The Journal of Technology Transfer, Springer, vol. 40(1), pages 85-104, February.
    13. Battistella, Cinzia & De Toni, Alberto F. & De Zan, Giovanni & Pessot, Elena, 2017. "Cultivating business model agility through focused capabilities: A multiple case study," Journal of Business Research, Elsevier, vol. 73(C), pages 65-82.
    14. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    15. O'Reilly, Charles A., III & Tushman, Michael, 2007. "Ambidexterity as a Dynamic Capability: Resolving the Innovator's Dilemma," Research Papers 1963, Stanford University, Graduate School of Business.
    16. Argote, Linda & Ingram, Paul, 2000. "Knowledge Transfer: A Basis for Competitive Advantage in Firms," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 150-169, May.
    17. Alberto Onetti & Antonella Zucchella & Marian Jones & Patricia McDougall-Covin, 2012. "Internationalization, innovation and entrepreneurship: business models for new technology-based firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 337-368, August.
    18. Sminia, Harry & Ates, Aylin & Paton, Steve & Smith, Marisa, 2019. "High value manufacturing: Capability, appropriation, and governance," European Management Journal, Elsevier, vol. 37(4), pages 516-528.
    19. Teece, David J., 2010. "Technological Innovation and the Theory of the Firm," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 679-730, Elsevier.
    20. Antonopoulou, Katerina & Begkos, Christos, 2020. "Strategizing for digital innovations: Value propositions for transcending market boundaries," Technological Forecasting and Social Change, Elsevier, vol. 156(C).

    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:tefoso:v:90:y:2015:i:pa:p:346-354. 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.sciencedirect.com/science/journal/00401625 .

    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.