IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v41y2017i2p71-89.html
   My bibliography  Save this article

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

Author

Listed:
  • Brown, Richard S.

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.

Suggested Citation

  • Brown, Richard S., 2017. "Scanning and updating failure: How AT&T turned its political capability into a core rigidity," Telecommunications Policy, Elsevier, vol. 41(2), pages 71-89.
    • Handle: RePEc:eee:telpol:v:41:y:2017:i:2:p:71-89
    DOI: 10.1016/j.telpol.2016.11.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030859611630204X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2016.11.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Adam D. Thierer, 1994. "Unnatural Monopoly: Critical Moments in the Development of the Bell System Monopoly," Cato Journal, Cato Journal, Cato Institute, vol. 14(2), pages 267-285, Fall.
    2. Kruse, Elizabeth, 2002. "From Free Privilege to Regulation: Wireless Firms and the Competition for Spectrum Rights before World War I," Business History Review, Cambridge University Press, vol. 76(4), pages 659-703, January.
    3. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    4. Cheng, Kuo-Tai, 2016. "Test of the mediating effects of regulatory decision tools in the communications regulator," Telecommunications Policy, Elsevier, vol. 40(2), pages 277-289.
    5. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    6. Thomas C. Powell, 2001. "Competitive advantage: logical and philosophical considerations," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 875-888, September.
    7. Ron Adner & Constance E. Helfat, 2003. "Corporate effects and dynamic managerial capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1011-1025, October.
    8. Chiang, Eric P. & Hauge, Janice A., 2013. "The impact of non-neutral federal regulatory policy on competition," Telecommunications Policy, Elsevier, vol. 37(11), pages 1142-1149.
    9. Sidney G. Winter, 2000. "The Satisficing Principle in Capability Learning," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 981-996, October.
    10. Richard S. Rosenbloom, 2000. "Leadership, Capabilities, and Technological Change: The Transformation of NCR in the Electronic Era," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1083-1103, October.
    11. Penrose, Edith T., 1960. "The Growth of the Firm—A Case Study: The Hercules Powder Company," Business History Review, Cambridge University Press, vol. 34(1), pages 1-23, April.
    12. Hochfelder, David, 2002. "Constructing an Industrial Divide: Western Union, AT&T, and the Federal Government, 1876–1971," Business History Review, Cambridge University Press, vol. 76(4), pages 705-732, January.
    13. Scott L. Newbert, 2007. "Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 121-146, February.
    14. Mark H. Hansen & Lee T. Perry & C. Shane Reese, 2004. "A Bayesian operationalization of the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 25(13), pages 1279-1295, December.
    15. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    16. Michael Gibbert & Winfried Ruigrok & Barbara Wicki, 2008. "What passes as a rigorous case study?," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1465-1474, December.
    17. García-Murillo, Martha A. & MacInnes, Ian, 2005. "The impact of legislative change on the behavior of telecommunications carriers," Telecommunications Policy, Elsevier, vol. 29(8), pages 663-684, September.
    18. Africa Ariño & Peter Smith Ring, 2010. "The role of fairness in alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 31(10), pages 1054-1087, October.
    19. De Vries, J. Pierre & Simić, Ljiljana & Achtzehn, Andreas & Petrova, Marina & Mähönen, Petri, 2014. "The Wi-Fi “congestion crisis”: Regulatory criteria for assessing spectrum congestion claims," Telecommunications Policy, Elsevier, vol. 38(8), pages 838-850.
    20. Ying‐Chan Tang & Fen‐May Liou, 2010. "Does firm performance reveal its own causes? the role of Bayesian inference," Strategic Management Journal, Wiley Blackwell, vol. 31(1), pages 39-57, January.
    21. Richard Makadok, 2001. "Toward a synthesis of the resource‐based and dynamic‐capability views of rent creation," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 387-401, May.
    22. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    23. Andrew C. Inkpen, 2008. "Knowledge transfer and international joint ventures: the case of NUMMI and General Motors," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 447-453, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Zhengang & Luo, Taiye, 2020. "Network capital, exploitative and exploratory innovations——from the perspective of network dynamics," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    2. Brown, Richard S. & Kline, William A., 2020. "Exogenous shocks and managerial preparedness: A study of U.S. airlines’ environmental scanning before the onset of the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 89(C).
    3. Liedong, Tahiru Azaaviele & Rajwani, Tazeeb & Lawton, Thomas C., 2020. "Information and nonmarket strategy: Conceptualizing the interrelationship between big data and corporate political activity," Technological Forecasting and Social Change, Elsevier, vol. 157(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. O'Reilly, Charles A., III & Tushman, Michael, 2007. "Ambidexterity as a Dynamic Capability: Resolving the Innovator's Dilemma," Research Papers 1963, Stanford University, Graduate School of Business.
    2. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    3. Sharma, Sunil, 2015. "Relevance of Resource Based View Themes for Capability Evolution," IIMA Working Papers WP2015-03-30, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. repec:dau:papers:123456789/9209 is not listed on IDEAS
    5. Giovanni. Gavetti & Daniel A. Levinthal, 2004. "50th Anniversay Article: The Strategy Field from the Perspective of Management Science: Divergent Strands and Possible Integration," Management Science, INFORMS, vol. 50(10), pages 1309-1318, October.
    6. Giovanni Gavetti, 2005. "Cognition and Hierarchy: Rethinking the Microfoundations of Capabilities’ Development," Organization Science, INFORMS, vol. 16(6), pages 599-617, December.
    7. Kraaijenbrink, Jeroen & Spender, JC & Groen, Aard, 2009. "The resource-based view: A review and assessment of its critiques," MPRA Paper 21442, University Library of Munich, Germany.
    8. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    9. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.
    10. Iman Seoudi & Matthias Huehn & Bo Carlsson, 2008. "Penrose Revisited: A Re-Appraisal of the Resource Perspective," Working Papers 14, The German University in Cairo, Faculty of Management Technology.
    11. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    12. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    13. Kazeminia, Ali, 2021. "Unfolding the airbus’ strategic growth: A successful case," Scandinavian Journal of Management, Elsevier, vol. 37(1).
    14. Wolfgang H. Güttel & Stefan Konlechner & Barbara Müller, 2012. "Entscheidungsmuster und Veränderungsarchitekturen in Wandelprozessen: Eine Dynamic Capabilities-Perspektive," Schmalenbach Journal of Business Research, Springer, vol. 64(6), pages 630-654, September.
    15. Manis, K.T. & Madhavaram, Sreedhar, 2023. "AI-Enabled marketing capabilities and the hierarchy of capabilities: Conceptualization, proposition development, and research avenues," Journal of Business Research, Elsevier, vol. 157(C).
    16. Carlo Salvato, 2009. "Capabilities Unveiled: The Role of Ordinary Activities in the Evolution of Product Development Processes," Organization Science, INFORMS, vol. 20(2), pages 384-409, April.
    17. Daspit, Joshua J. & Long, Rebecca G. & Pearson, Allison W., 2019. "How familiness affects innovation outcomes via absorptive capacity: A dynamic capability perspective of the family firm," Journal of Family Business Strategy, Elsevier, vol. 10(2), pages 133-143.
    18. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2022. "What makes organizations unique? Looking inside the box," Journal of Business Research, Elsevier, vol. 139(C), pages 664-674.
    19. Tomi Laamanen & Johan Wallin, 2009. "Cognitive Dynamics of Capability Development Paths," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 950-981, September.
    20. Carlo Salvato & Roberto Vassolo, 2018. "The sources of dynamism in dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1728-1752, June.
    21. Vikas A. Aggarwal & Hart E. Posen & Maciej Workiewicz, 2017. "Adaptive capacity to technological change: A microfoundational approach," Strategic Management Journal, Wiley Blackwell, vol. 38(6), pages 1212-1231, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:41:y:2017:i:2:p:71-89. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.