IDEAS home Printed from https://ideas.repec.org/a/spr/infosf/v8y2006i3d10.1007_s10796-006-8781-1.html
   My bibliography  Save this article

The rise and fall of the competitive local exchange carriers in the U.S.: An institutional perspective

Author

Listed:
  • Qing Hu

    (Florida Atlantic University)

  • C. Derrick Huang

    (Florida Atlantic University)

Abstract

The debacle of the telecommunications industry at the turn of the millennium resulted in significant consequences for investors, workers, financial institutions, telecom companies, and the economy in general worldwide. In the midst of the telecom bubble, the CLECs (competitive local exchange carriers) adopted similar or identical business plans and saturated the market, which resulted in destructive competition. In this study, we investigate the isomorphic business models of the CLECs from the perspectives of the new institutional theory. We argue that the combined coercive, mimetic, and normative institutional forces exerted on the companies by the actors who controlled the funding, managed the business, and provided the information fashioned the isomorphic CLEC business models, which in turn contributed to the demise of these companies and thus the burst of the telecom bubble. Evidence of the institutional influences on CLECs and the actors exerted the influences are presented and their consequences are discussed.

Suggested Citation

  • Qing Hu & C. Derrick Huang, 2006. "The rise and fall of the competitive local exchange carriers in the U.S.: An institutional perspective," Information Systems Frontiers, Springer, vol. 8(3), pages 225-239, July.
    • Handle: RePEc:spr:infosf:v:8:y:2006:i:3:d:10.1007_s10796-006-8781-1
    DOI: 10.1007/s10796-006-8781-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10796-006-8781-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10796-006-8781-1?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. Koski, Heli A. & Majumdar, Sumit K., 2002. "Paragons of virtue? Competitor entry and the strategies of incumbents in the U.S. local telecommunications industry," Information Economics and Policy, Elsevier, vol. 14(4), pages 453-480, December.
    2. Alexander Osterwalder & Yves Pigneur, 2002. "An e-Business Model Ontology for Modeling e-Business," Industrial Organization 0202004, University Library of Munich, Germany.
    3. Shane Greenstein & Michael Mazzeo, 2003. "Differentiation Strategy and Market Deregulation: Local Telecommunication Entry in the Late 1990s," NBER Working Papers 9761, National Bureau of Economic Research, Inc.
    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. Venugopal Gopalakrishna-Remani & Robert Paul Jones & Kerri M. Camp, 2019. "Levels of EMR Adoption in U.S. Hospitals: An Empirical Examination of Absorptive Capacity, Institutional Pressures, Top Management Beliefs, and Participation," Information Systems Frontiers, Springer, vol. 21(6), pages 1325-1344, December.
    2. Kim, Dokyung & Kim, Seongcheol, 2019. "An institutional analysis of environmental management in the Korean mobile communications industry," Telecommunications Policy, Elsevier, vol. 43(10).
    3. Siddhartha Menon, 2021. "An Institutional Analysis of TMP Regulation in India," Review of Policy Research, Policy Studies Organization, vol. 38(3), pages 300-325, May.
    4. Kim, Dokyung & Kim, Seongcheol, 2018. "An Institutional Analysis of Environmental Management in Korean Mobile Communications Industry," 22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society 190410, International Telecommunications Society (ITS).
    5. Duong Dang & Samuli Pekkola, 0. "Institutional Perspectives on the Process of Enterprise Architecture Adoption," Information Systems Frontiers, Springer, vol. 0, pages 1-13.
    6. Duong Dang & Samuli Pekkola, 2020. "Institutional Perspectives on the Process of Enterprise Architecture Adoption," Information Systems Frontiers, Springer, vol. 22(6), pages 1433-1445, December.
    7. Glass Victor, 2019. "The Net Neutrality Debate is Outdated: Time for a New Wider View," Review of Network Economics, De Gruyter, vol. 18(4), pages 243-276, December.

    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. Mahmoud Abdel Hamid Saleh, 2016. "Social Networks and Customer Relationship Development at the Saudi Telecommunication Service Providers," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(4), pages 77-86, August.
    2. Xuerong Li & Han Qiao & Shouyang Wang, 2017. "Exploring evolution and emerging trends in business model study: a co-citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 869-887, May.
    3. Gerrit Versteeg & Harry Bouwman, 2006. "Business architecture: A new paradigm to relate business strategy to ICT," Information Systems Frontiers, Springer, vol. 8(2), pages 91-102, February.
    4. Mechelli, Alessandro & Cimini, Riccardo & Mazzocchetti, Francesca, 2017. "The usefulness of the business model disclosure for investors’ judgements in financial entities. A European study," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 20(1), pages 1-12.
    5. Marikka Heikkilä & Harry Bouwman & Jukka Heikkilä & Sam Solaimani & Wil Janssen, 2016. "Business model metrics: an open repository," Information Systems and e-Business Management, Springer, vol. 14(2), pages 337-366, May.
    6. Tommaso Pucci & Christian Simoni & Lorenzo Zanni, 2013. "Modelli di business e strategie di marketing nelle medie imprese. La gestione della crisi tra continuit? e cambiamento," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(3), pages 25-45.
    7. Saeed Nosratabadi & Gergo Pinter & Amir Mosavi & Sandor Semperger, 2020. "Sustainable Banking; Evaluation of the European Business Models," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    8. Daniel Veit & Eric Clemons & Alexander Benlian & Peter Buxmann & Thomas Hess & Dennis Kundisch & Jan Leimeister & Peter Loos & Martin Spann, 2014. "Business Models," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 6(1), pages 45-53, February.
    9. Bonazzi, Riccardo & Grèzes, Vincent & Barbey, Valérie, 2017. "Service Design Guidelines for New Types of Wellness Tourism," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2017), Dubrovnik, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Dubrovnik, Croatia, 7-9 September 2017, pages 332-339, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    10. Abdullahi O. Abdulkadri, 2014. "Impact Of Deregulation Of The Jamaica Mobile Phone Market On Calling Rates," American Journal of Economics and Business Administration, Science Publications, vol. 6(2), pages 81-88, August.
    11. Bel, Germà & Trillas, Francesc, 2005. "Privatization, corporate control and regulatory reform: the case of Telefonica," Telecommunications Policy, Elsevier, vol. 29(1), pages 25-51, February.
    12. Majumdar, Sumit K. & Yaylacicegi, Ulku & Moussawi, Rabih, 2012. "Mergers and synergy: Lessons from contemporary telecommunications history," Telecommunications Policy, Elsevier, vol. 36(2), pages 140-154.
    13. Gil, Ricard & Riera-Crichton, Daniel & Ruzzier, Christian, 2016. "As Seen on TV: Price Discrimination and Competition in Television Advertising," MPRA Paper 75993, University Library of Munich, Germany.
    14. Aoun, Dany & Hwang, Junseok, 2008. "The effects of cash flow and size on the investment decisions of ICT firms: A dynamic approach," Information Economics and Policy, Elsevier, vol. 20(2), pages 120-134, June.
    15. Arne Jeppe & Heike Proff & Max Eickhoff, 2023. "Economic Potentials of Ecologically Attractive Multi-Life Products—The Example of Lithium-Ion Batteries," Sustainability, MDPI, vol. 15(14), pages 1-16, July.
    16. Hyytinen, Ari & Pajarinen, Mika, 2005. "Financing of technology-intensive small businesses: some evidence on the uniqueness of the ICT sector," Information Economics and Policy, Elsevier, vol. 17(1), pages 115-132, January.
    17. Mariusz Salwin & Ilona Jacyna-Gołda & Andrzej Kraslawski & Aneta Ewa Waszkiewicz, 2022. "The Use of Business Model Canvas in the Design and Classification of Product-Service Systems Design Methods," Sustainability, MDPI, vol. 14(7), pages 1-23, April.
    18. Majumdar, Sumit K., 2014. "Technology and wages: Why firms invest and what happens," Technology in Society, Elsevier, vol. 39(C), pages 44-54.
    19. Majumdar, Sumit K., 2016. "Debt and communications technology diffusion: Retrospective evidence," Research Policy, Elsevier, vol. 45(2), pages 458-474.
    20. Shrutika Mishra & A. R. Tripathi, 2020. "Literature review on business prototypes for digital platform," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-19, December.

    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:spr:infosf:v:8:y:2006:i:3:d:10.1007_s10796-006-8781-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.