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The emerging value network in the mobile phone industry: The case of Japan and its implications for the rest of the world

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  • Funk, Jeffrey L.

Abstract

This paper considers how the mobile phone industry is changing from a value chain to a value network using the Japanese market as an example. Value networks involve a larger number of firms, a more complex set of relationships between them, and agreements on a greater number of interface standards than do value chains. Building from this concept of a value network, the paper shows how: (1) agreements on many of these interface standards are enabling connections to be made between the mobile phone and other industries; (2) the resulting products and services often reflect the technological capability of phones and the existing products and services in these "other" industries; (3) each new interface standard requires a new critical mass of users; and (4) a critical mass of users for a new interface standard partly builds from previously created critical masses of users. On a practical level, this paper's analysis adds to a growing list of evidence that the growth in Western mobile Internet markets is nowhere near its potential and that the change from a value chain to a value network requires a different form of standard setting, policy making, and management than are currently used in the mobile phone industry.

Suggested Citation

  • Funk, Jeffrey L., 0. "The emerging value network in the mobile phone industry: The case of Japan and its implications for the rest of the world," Telecommunications Policy, Elsevier, vol. 33(1-2), pages 4-18, February.
    • Handle: RePEc:eee:telpol:v:33:y::i:1-2:p:4-18
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    Citations

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    Cited by:

    1. Mazzucato, Mariana & Robinson, Douglas K.R., 2018. "Co-creating and directing Innovation Ecosystems? NASA's changing approach to public-private partnerships in low-earth orbit," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 166-177.
    2. Hu, Hanhui & Wan, Xing & Lv, Kui & Xu, Min, 2012. "Mapping China's 3G market with the strategic network paradigm," Telecommunications Policy, Elsevier, vol. 36(10), pages 977-988.
    3. Xing Wan & Javier Cenamor & Jing Chen, 2017. "Exploring Performance Determinants of China’s Cable Operators and OTT Service Providers in the Era of Digital Convergence—From the Perspective of an Industry Platform," Sustainability, MDPI, vol. 9(12), pages 1-19, December.
    4. Milena Klasing Chen & Sophie Hooge & Blanche Segrestin, 2015. "Creating value for everyone – when product design crafts ecosystem regulations," Post-Print hal-01147408, HAL.
    5. Wehrheim, David & Dalay, Hakkı Doğan & Fosfuri, Andrea & Helmers, Christian, 2020. "How mixed ownership affects decision making in turbulent times: Evidence from the digital revolution in telecommunications," Journal of Corporate Finance, Elsevier, vol. 64(C).
    6. Mariana Mazzucato & Douglas K Robinson, 2016. "Lost in space? NASA and the changing publicprivate eco-system in space," SPRU Working Paper Series 2016-20, SPRU - Science Policy Research Unit, University of Sussex Business School.
    7. Asimakopoulos, Grigorios & Whalley, Jason, 2017. "Market leadership, technological progress and relative performance in the mobile telecommunications industry," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 57-67.
    8. Ghezzi, Antonio & Cortimiglia, Marcelo Nogueira & Frank, Alejandro Germán, 2015. "Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 346-354.
    9. Sumeet Gupta & Haejung Yun & Heng Xu & Hee-Woong Kim, 2017. "An exploratory study on mobile banking adoption in Indian metropolitan and urban areas: a scenario-based experiment," Information Technology for Development, Taylor & Francis Journals, vol. 23(1), pages 127-152, January.
    10. Wang, Juite & Lai, Jung-Yu & Chang, Chih-Hsin, 2016. "Modeling and analysis for mobile application services: The perspective of mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 146-163.
    11. Ke Rong & Yong Lin & Boyi Li & Thommie Burström & Lynne Butel & Jiang Yu, 2018. "Business ecosystem research agenda: more dynamic, more embedded, and more internationalized," Asian Business & Management, Palgrave Macmillan, vol. 17(3), pages 167-182, July.
    12. Gerpott, Torsten J. & Ahmadi, Nima, 2015. "Determinants of willingness to look for separate international roaming services—An empirical study of mobile communication customers in Germany," International Journal of Information Management, Elsevier, vol. 35(2), pages 192-203.
    13. Grove, Nico & Baumann, Oliver, 2011. "Bitpipe vs. service: Why do pure service providers outperform fully integrated operators?," 8th ITS Asia-Pacific Regional Conference, Taipei 2011: Convergence in the Digital Age 52308, International Telecommunications Society (ITS).
    14. Ernkvist, Mirko, 2015. "Velocity shifts in the creative economy: incumbent-entrant dynamics in the emergence of Japanese social games," Ratio Working Papers 267, The Ratio Institute.

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