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Information Technology and the Dynamics of Firm and Industrial Structure: The British IT Consulting Industry as a Contemporary Specimen

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Author Info
Kenneth L. Simons (Department of Economics, Royal Holloway, University of London)

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Abstract

The internet is often anticipated to have disruptive competitive impacts, causing upstart firms to overthrow incumbent market leaders. This paper uses the UK IT consulting industry as a test case to see whether such competitive impacts of the internet might already be occurring. Comparable possible impacts of the introduction of personal computers are also considered. Findings regarding the entry, exit, growth, and technology-related areas of business for new entrants and incumbents over a period of three decades suggest that the internet did not have such a radical effect on market structure by the year 2000.

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File URL: http://www.rhul.ac.uk/economics/Research/WorkingPapers/pdf/dpe0102.pdf
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Publisher Info
Paper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 01/2.

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Length: 21 pages
Date of creation: Aug 2001
Date of revision: Aug 2001
Handle: RePEc:hol:holodi:0102

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Postal: Egham Hill, Egham, Surrey, TW20 0EX, UK.
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Related research
Keywords: Internet; disruptive technology; market structure; computers; IT consultancies;

Find related papers by JEL classification:
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. 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. [Downloadable!] (restricted)
  2. Jovanovic, Boyan & MacDonald, Glenn M, 1994. "The Life Cycle of a Competitive Industry," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 322-47, April. [Downloadable!] (restricted)
    Other versions:
  3. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 379-460, March.
  4. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall. [Downloadable!] (restricted)
  5. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November. [Downloadable!] (restricted)
    Other versions:
  6. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-74, August. [Downloadable!] (restricted)
    Other versions:
  7. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-50, August. [Downloadable!] (restricted)
  8. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-83, June. [Downloadable!] (restricted)
  9. Steven Klepper & Kenneth L. Simons, 2000. "The Making of an Oligopoly: Firm Survival and Technological Change in the Evolution of the U.S. Tire Industry," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 728-760, August. [Downloadable!] (restricted)
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