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Strategic action in network industries: an empirical analysis of the European mobile phone industry

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  • Fjeldstad, Øystein D.
  • Becerra, Manuel
  • Narayanan, Sathya

Abstract

This paper investigates the strategic moves of European mobile phone operators during the early development of the industry. Drawing on the literature on competitive dynamics and markets externalities, we study the strategic actions taken by mediators, i.e., firms based on a mediating technology such as phone operators (Organizations in Action, McGraw-Hill, New York, 1967; Strat. Manage. J. 19(5) (1998) 413). As expected, market penetration, concentration, and time evolution drive the likelihood of inter-firm cooperation and the types of strategic action taken by firms in this network industry. The results confirm the unique characteristics of the value network configuration with regard to how mediators create value, the primary activities that they perform, and the combination of competitive and cooperative conduct in this type of industry.

Suggested Citation

  • Fjeldstad, Øystein D. & Becerra, Manuel & Narayanan, Sathya, 0. "Strategic action in network industries: an empirical analysis of the European mobile phone industry," Scandinavian Journal of Management, Elsevier, vol. 20(1-2), pages 173-196, March.
    • Handle: RePEc:eee:scaman:v:20:y::i:1-2:p:173-196
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    Cited by:

    1. Zucchini, Leon & Kretschmer, Tobias, 2011. "Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals," Discussion Papers in Business Administration 12308, University of Munich, Munich School of Management.
    2. Mourad Hannachi & Francois-Christophe Coleno, 2015. "The Virtues of the Vice of Cooperation between Rival Firms: A Simulation Model to Evaluate the Performance of Coopetition Strategy in the Grain Merchant Industry," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 6(1), pages 62-75, February.
    3. Mourad Hannachi & François Coléno, 2015. "The virtues of the vice of cooperation between rival firms : a simulation model to evaluate the performance of coopetition strategy in the grain merchant industry," Post-Print hal-01123186, HAL.
    4. Wells, Peter & Wang, Xiaobei & Wang, Liqiao & Liu, Haokun & Orsato, Renato, 2020. "More friends than foes? The impact of automobility-as-a-service on the incumbent automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    5. Martin Schnitzer & Maximilian Seidl & Philipp Schlemmer & Mike Peters, 2018. "Analyzing the Coopetition between Tourism and Leisure Suppliers—A Case Study of the Leisure Card Tirol," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    6. Isidoro Romero & Igone Porto Gómez & Jon Mikel Zabala-Iturriagagoitia, 2019. "‘Cookpetition’: Do restaurants coopete to innovate?," Tourism Economics, , vol. 25(6), pages 904-922, September.
    7. Estelle Pellegrin-Boucher & Frédéric Le Roy, 2009. "Dynamique des stratégies de coopétition dans le secteur des TIC: le cas des ERP," Revue Finance Contrôle Stratégie, revues.org, vol. 12(3), pages 97-130, September.
    8. Mourad Hannachi & Fran?ois-Christophe Col¨¦no, 2015. "Managing the Evolution of Coopetition Dynamics: A Longitudinal Case Study on the French Grain Merchants Industry," Business and Management Research, Business and Management Research, Sciedu Press, vol. 4(4), pages 13-26, December.
    9. Chen-Ju Lin & Ci-Rong Li & Chih-Peng Chu, 2011. "The effects of applying a hybrid method with a macro–micro approach for market research in the telecommunication industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(4), pages 829-843, June.
    10. Riku Laanti & Fred McDougall & Georges Baume, 2009. "How well do Traditional Theories Explain the Internationalisation of Service MNEs from Small and Open Economies? – Case: National Telecommunication Companies," Management International Review, Springer, vol. 49(1), pages 121-144, February.

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