This paper analyses a telecommunications firm’s choice to enter the multimedia service provision business, and empirically specifies a strategy-capability model that relates the potential entrant’s choice to both its external environment and its evolving collection of internal capabilities. The MOSAICO database has provided the econometric model with a sample composed of the initiatives undertaken in the new business by the world’s largest common carriers in the 1990-’96 period. The empirical results support the view that, in the current phase of the new business, cooperation is an effective learning device; further, a “bandwagon” effect is partly accepted. Lastly, a competence-enhancing nature of the multimedia service provision with respect to technological knowledge can be rejected.
Firms' Heterogeneity and Dynamics of Entry in a New Sector: Analysis of the Multimedia Service Provision Sector
SERI, RAFFAELLO
2000-01-01
Abstract
This paper analyses a telecommunications firm’s choice to enter the multimedia service provision business, and empirically specifies a strategy-capability model that relates the potential entrant’s choice to both its external environment and its evolving collection of internal capabilities. The MOSAICO database has provided the econometric model with a sample composed of the initiatives undertaken in the new business by the world’s largest common carriers in the 1990-’96 period. The empirical results support the view that, in the current phase of the new business, cooperation is an effective learning device; further, a “bandwagon” effect is partly accepted. Lastly, a competence-enhancing nature of the multimedia service provision with respect to technological knowledge can be rejected.
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