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VoIP Diffusion among New Entrants: A Path Dependent Process

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  • Grazia Cecere

Abstract

The path dependency literature provides insights on the dynamic allocation processes in which events are non-ergodic and have multiple absorbing states. Technological change belongs to this class of processes. This paper contributes to this conceptual framework by analysing the distinction between path and past dependence. The aim is to investigate how firms implement new innovations in localized technological changes. This conceptual framework is developed to present a longitudinal case study describing the history of VoIP (Voice over Internet Protocol) diffusion using data triangulation. From the empirical findings, it emerges that new entrants have applied the technology with creativity, following a path dependent process, offering free voice communication, while incumbents have applied the technology within a past dependent pattern and thus the benefits to their customers have been reduced and delayed.

Suggested Citation

  • Grazia Cecere, 2009. "VoIP Diffusion among New Entrants: A Path Dependent Process," Industry and Innovation, Taylor & Francis Journals, vol. 16(2), pages 219-245.
  • Handle: RePEc:taf:indinn:v:16:y:2009:i:2:p:219-245
    DOI: 10.1080/13662710902764410
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    References listed on IDEAS

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    1. Cristiano Antonelli & Dominique Foray & Bronwyn H. Hall & W. Edward Steinmueller (ed.), 2006. "New Frontiers in the Economics of Innovation and New Technology," Books, Edward Elgar Publishing, number 3286.
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    Cited by:

    1. Shin, Dong-Hee, 2012. "What makes consumers use VoIP over mobile phones? Free riding or consumerization of new service," Telecommunications Policy, Elsevier, vol. 36(4), pages 311-323.
    2. Grazia Cecere & Muge Ozman, 2014. "Innovation, Recombination and Technological Proximity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 646-667, September.
    3. Cecere, Grazia, 2012. "Creative and adaptive responses in technological change," 23rd European Regional ITS Conference, Vienna 2012 60396, International Telecommunications Society (ITS).

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