THE DIFFUSION OF I-MODE OVERSEAS: A PERSPECTIVE OF INSTITUTIONAL DIFFERENCES

Chia-Liang Hung () and Shu-Yu Yeh ()
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Chia-Liang Hung: Department of Information Management, National Chi Nan University, Puli, Nantou, Taiwan 545, R.O.C.
Shu-Yu Yeh: Graduate Institute of Management Science, Ming Chuan University, Taipei, Taiwan 111, R.O.C.

International Journal of Innovation and Technology Management (IJITM), 2007, vol. 04, issue 01, 69-86

Abstract: The Japanese telecom giant DoCoMo launched promoted its proprietary i-mode mobile services in 1999 and overseas in 2002. Diffusion overseas was much slower than expected, however. This paper investigates the diffusion of Japanese i-mode mobile internet in Europe from an institutional perspective, focusing on five earlier i-mode overseas operators located in Taiwan, The Netherlands, Germany, Belgium, and France. We found four strategic institutional levers that stimulated i-mode domestic diffusion but failed to appear in overseas areas: operator leadership, subscriber scale, mobile penetration rate, and the ability of the firm to coordinate capability among complements. We propose strategies to internationalize a new standard by co-branding with local vendors and by using penetration pricing as an incentive for switching. Additionally, we recommend an industrial policy that drives cannibalization to facilitate mobile migration to a more advanced standard.

Keywords: Institution; mobile standard; diffusion strategy (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S0219877007000916

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