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The evolution of the network structure in the ICT sector

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  • Hallikas, Jukka
  • Varis, Jari
  • Sissonen, Heli
  • Virolainen, Veli-Matti

Abstract

This study examines the development of collaborative relationships in the Information and Communications Technology (ICT) sector. Companies form close relationships with other companies to access complementary resources, and such links create networks that promote value delivery. This paper provides a theoretical outline of the structural network and alliance research. We also analyze the evolution of the ICT network in terms of position and power relations at different time spans, and provide an overview of the theoretical basis of interfirm networking. The network dynamics and evolution based on structural analysis of the network is clarified by describing the alliance evolution of different actors in a case ICT sector network. We also analyze the actors' structural position in the industry network by adapting the algorithms for structural network analysis. Finally, we compare the companies' structural position in the network and their R&D input. Our results indicate that value networks emerge and develop to a large extent through their structure. A strong position in these networks seems to indicate external resource orientation. Furthermore, the results of this paper provide indications about the circumstances and effects of a company's structural position in an ICT industry network.

Suggested Citation

  • Hallikas, Jukka & Varis, Jari & Sissonen, Heli & Virolainen, Veli-Matti, 2008. "The evolution of the network structure in the ICT sector," International Journal of Production Economics, Elsevier, vol. 115(2), pages 296-304, October.
    • Handle: RePEc:eee:proeco:v:115:y:2008:i:2:p:296-304
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Jing & Liang, Xiong-jian, 2012. "Promoting green ICT in China: A framework based on innovation system approaches," Telecommunications Policy, Elsevier, vol. 36(10), pages 997-1013.
    2. Dias Ferreira, André Machado & Barbin Laurindo, Fernando José, 2009. "Outsourcing decision-making aspects considered by IT departments in Brazilian companies," International Journal of Production Economics, Elsevier, vol. 122(1), pages 305-311, November.
    3. Agostini, Lara & Filippini, Roberto & Nosella, Anna, 2015. "Management and performance of strategic multipartner SME networks," International Journal of Production Economics, Elsevier, vol. 169(C), pages 376-390.
    4. T. Vapola, 2011. "The laws of attraction: What attracts innovative start-up firms to partnerships with global MNCs?," Journal of International Entrepreneurship, Springer, vol. 9(1), pages 39-61, March.
    5. Kyläheiko, Kalevi & Jantunen, Ari & Puumalainen, Kaisu & Luukka, Pasi, 2011. "Value of knowledge--Technology strategies in different knowledge regimes," International Journal of Production Economics, Elsevier, vol. 131(1), pages 273-287, May.
    6. Dong-Young Kim & Pengcheng Zhu & Wenli Xiao & Yen-Ting Lin, 2020. "Customer degree centrality and supplier performance: the moderating role of resource dependence," Operations Management Research, Springer, vol. 13(1), pages 22-38, June.
    7. Binsfeld, Nico & Whalley, Jason & Pugalis, Lee, 2017. "An analysis of the structure, actors and interrelationships producing Luxembourg's ICT ecosystem," 28th European Regional ITS Conference, Passau 2017 169450, International Telecommunications Society (ITS).
    8. Binsfeld, Nico & Pugalis, Lee & Whalley, Jason, 2015. "ICT ecosystems in small countries: an analysis of Luxembourg," 26th European Regional ITS Conference, Madrid 2015 127127, International Telecommunications Society (ITS).

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