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Value Networks, Industry Standards, and Firm Performance in the World-Wide Mobile Communication Industries

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  • Jeffrey L. Funk

    (Kobe University)

Abstract

This paper uses the concepts of enactment and value networks to explain competition in the mobile communication industries. The most successful suppliers of mobile communication services, equipment and phones for a particular technology have been located in countries which have successfully enacted these effective value networks. These effective value networks include suppliers of services and products where the services and products adhere to a communication standard that is widely adopted throughout the world. Although incumbents have by and large been successful in the adoption of competence-destroying innovations, most firms have been trapped by their own value networks and thus have been unable to be successful in more than one generation of technology. Although these firms have and continue to expect technological discontinuities to occur and thus restart the competition between dominant designs, most firms have been unable to participate in or have ignored the competition between dominant designs which has occurred outside of their own value network

Suggested Citation

  • Jeffrey L. Funk, 1997. "Value Networks, Industry Standards, and Firm Performance in the World-Wide Mobile Communication Industries," Kobe Economic & Business Review, Research Institute for Economics & Business Administration, Kobe University, vol. 41, pages 101-132, February.
    • Handle: RePEc:kob:review:feb1997::v:41:p:101-132
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    File URL: https://www.rieb.kobe-u.ac.jp/research/publication/kobe_review/index.html
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    More about this item

    Keywords

    Mobile; Communication; Standards; Enactmen; Phones; Technology; Management; Innovations; Competencies;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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