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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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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.

Suggested Citation

  • Kenneth L. Simons, 2001. "Information Technology and the Dynamics of Firm and Industrial Structure: The British IT Consulting Industry as a Contemporary Specimen," Royal Holloway, University of London: Discussion Papers in Economics 01/2, Department of Economics, Royal Holloway University of London, revised Aug 2001.
  • Handle: RePEc:hol:holodi:0102
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    Cited by:

    1. Koski, H. & Rouvinen, P. & Yla-Anttila, P., 2002. "ICT clusters in Europe The great central banana and the small Nordic potato," Information Economics and Policy, Elsevier, vol. 14(2), pages 145-165, June.

    More about this item

    Keywords

    Internet; disruptive technology; market structure; computers; IT consultancies;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - 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

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