How do ICT firms react to convergence? : An analysis of diversification strategies
ISBN
978-952-60-3574-1
Type
conference paper
Date Issued
2011-06-09
Author(s)
Editor(s)
Tuunainen, Virpi
Nandhakumar, Joe
Rossi, Matti
Soliman, W.
Abstract
Convergence represents a dominant force in the evolution of the ICT industry. Under convergence, the identification and analysis of strategies to efficiently leverage firm resources and to configure firm cooperations represents a challenging task. Diversification is considered a central firm strategy with regard to convergence. Former research has mainly focused on the phenomenon of ICT convergence per se. In this article, we analyse how ICT firms react to convergence. Network analysis techniques are applied to assess the degree to which ICT market segments are exposed to convergence. Based on this assessment, we evaluate firm diversification strategies under convergence with a focus on diversification objectives and firm performance. The data analysis provides two major implications. Firstly, convergence creates synergy potentials for diversifying ICT firms. Secondly, diversification does not generally allow ICT firms, which are exposed to convergence, a more efficient application of resources. Even though the term convergence is often cited in ICT research, empirical analyses addressing ICT convergence and firm strategies are rather scarce. This work provides such an analysis by applying a novel research approach based on network analysis.
Language
English
Keywords
Business strategy
Business network(s)
Performance
Synergy
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Proceedings of the 19th European Conference on Information Systems
Publisher
Aalto University, School of Economics
Publisher place
Helsinki
Start page
1
End page
13
Pages
13
Event Title
19th European Conference on Information Systems (ECIS) 2011
Event Location
Helsinki, Finland
Event Date
09.-11.06.2011
Official URL
Subject(s)
Division(s)
Eprints ID
226676