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How disruptive are disruptive operators?

Author

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  • Pierre Vialle

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Jason Whalley

    (Newcastle University Business School, IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Xavier Parisot

    (IKI-SEA - The Institute for Knowledge and Innovation South East Asia (Bangkok University))

Abstract

The issue of disruptive operators has recently gained interest among researchers and regulators. From a regulator's perspective, disruptive operators can increase competitive rivalry in markets dominated by a handful of large companies, thus allowing consumers to obtain more benefits in terms of price and quality. However, the "disruptive" qualification of an operator in related studies does not rely on a precise definition of disruption. The disruption theory, as developed by Christensen, provides such a definition but may be too restrictive. In addition, it may not be adapted to the analysis of disruption in regulated industries such as telecommunications. In this paper, we aim at deepening our understanding of disruption in the case of the Telecommunications industry, by analysing cases of mobile operators who entered the industry thanks to 3G or 4G licences. To this end we first analyse the disruption theory literature and highlight its characteristics and limitations. It allows us to propose an eclectic analytical framework of disruptive innovations that does not restrict to Christensen's theory. We then apply it to different cases of disruptive mobile operators in order to identify the level and pattern of disruption inherent to each case, and to compare them. We conclude by discussing our findings and further research perspectives.

Suggested Citation

  • Pierre Vialle & Jason Whalley & Xavier Parisot, 2018. "How disruptive are disruptive operators?," Post-Print hal-02337855, HAL.
    • Handle: RePEc:hal:journl:hal-02337855
    Note: View the original document on HAL open archive server: https://hal.science/hal-02337855
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    References listed on IDEAS

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    1. Berne, Michel & Vialle, Pierre & Whalley, Jason, 2016. "Is competition just a question of numbers? An analysis of the impact of the entry of Free Mobile into the French mobile telecommunications market," 27th European Regional ITS Conference, Cambridge (UK) 2016 148659, International Telecommunications Society (ITS).
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    3. Henry Chesbrough, 1999. "Arrested development: the experience of European hard disk drive firms in comparison with US and Japanese firms," Journal of Evolutionary Economics, Springer, vol. 9(3), pages 287-329.
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    5. Chesbrough, Henry W., 2003. "Environmental influences upon firm entry into new sub-markets: Evidence from the worldwide hard disk drive industry conditionally," Research Policy, Elsevier, vol. 32(4), pages 659-678, April.
    6. Peter Curwen & Jason Whalley, 2014. "Mobile Telecommunications Networks," Books, Edward Elgar Publishing, number 15816.
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    Keywords

    Regulated Industries; Telecommunications; Disruption; Innovation; Business Model; Strategy; Policy;
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