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

Øystein D. Fjeldstad, Manuel Becerra and Sathya Narayanan

Scandinavian Journal of Management, vol. 20, issue 1-2, 173-196

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.

Keywords: Network; industries; Competitive; dynamics; Value-creation; analysis (search for similar items in EconPapers)
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