Scanning and updating failure: How AT&T turned its political capability into a core rigidity

Richard S. Brown

Telecommunications Policy, 2017, vol. 41, issue 2, 71-89

Abstract: •This case highlights how AT&T utilized political capabilities and a non-market strategy.•The context for this case study is AT&T’s use of political capabilities to secure anti-trust approval in its horizontal acquisitions.•Management at AT&T failed to incorporate a changing societal and political environment around 2009 and, therefore, the political capabilities turned into rigidities.•By failing to incorporate this new information, AT&T pursued an acquisition of T-Mobile USA, which was subsequently blocked by federal regulators.•AT&T took loses exceeding $6 Billion due to its failed takeover attempt.

Keywords: Telecommunication; Lobbying; Political connections; Corporate political activity; Capabilities; RBV (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.telpol.2016.11.004

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