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Scanning and updating failure: How AT&T turned its political capability into a core rigidity

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  • Brown, Richard S.

Abstract

•This case highlights how AT&T utilized political capabilities and a non-market strategy.•The context for this case study is AT&T’s use of political capabilities to secure anti-trust approval in its horizontal acquisitions.•Management at AT&T failed to incorporate a changing societal and political environment around 2009 and, therefore, the political capabilities turned into rigidities.•By failing to incorporate this new information, AT&T pursued an acquisition of T-Mobile USA, which was subsequently blocked by federal regulators.•AT&T took loses exceeding $6 Billion due to its failed takeover attempt.

Suggested Citation

  • Brown, Richard S., 2017. "Scanning and updating failure: How AT&T turned its political capability into a core rigidity," Telecommunications Policy, Elsevier, vol. 41(2), pages 71-89.
    • Handle: RePEc:eee:telpol:v:41:y:2017:i:2:p:71-89
    DOI: 10.1016/j.telpol.2016.11.004
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    2. Liedong, Tahiru Azaaviele & Rajwani, Tazeeb & Lawton, Thomas C., 2020. "Information and nonmarket strategy: Conceptualizing the interrelationship between big data and corporate political activity," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    3. Brown, Richard S. & Kline, William A., 2020. "Exogenous shocks and managerial preparedness: A study of U.S. airlines’ environmental scanning before the onset of the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 89(C).

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