Strategic Reconfigurations

Strategic Reconfigurations

Building Dynamic Capabilities in Rapid Innovation-based Industries

Edited by Stuart Wall, Carsten Zimmermann, Ronald Klingebiel and Dieter Lange

This path-breaking book provides unique insights into the organisational realities of strategic reconfigurations in uncertain markets, thus advancing the dynamic capability perspective.

Chapter 10: The Power of Fixed Mobile Convergence: The Changes in the Telecommunications Industry and the Role of Dynamic Capabilities

Stefanie Düker, Silvia Boßow-Thies, Philipp Zimmermann and Dieter Lange

Subjects: business and management, organisational innovation, strategic management, economics and finance, industrial organisation, innovation and technology, organisational innovation


Stefanie Düker1, Silvia Boßow-Thies2, Philipp Zimmermann3 and Dieter Lange4 ABSTRACT This chapter provides an in-depth insight into the development of fixed mobile convergence in Germany, thereby investigating the role of dynamic capabilities and how they can enable telecommunication firms to be successful in a converged market. Based on a two-stage, exploratory research method incorporating 17 industry expert interviews and a quantitative survey of 500 German households, we contrast providers’ and customers’ views on success factors as well as specific convergent services and applications. For fixed-only and mobile-only operators, building and effectively integrating external resources through a customer-oriented partnership strategy and alliancing process will determine success in a converged market. For integrated operators, success will be determined by the effective reconfiguration and integration of resources and capabilities of traditionally separate business units. Dynamic capabilities will be especially important in the areas of product development, marketing, sales and customer service. We hence argue that due to the dynamics within the telecommunications industry the dynamic capabilities view is a useful concept for understanding how firms can transform to meet the challenges of fixed mobile convergence. We conclude by giving recommendations for future research. INTRODUCTION The telecommunications industry is a high-technology industry which in recent years has been characterised by intense competition and fast, 243 244 Strategic reconfigurations continuous and complex change. At present, it is undergoing an even more radical transformation: The approaching saturation of fixed and mobile voice markets has prompted operators to spread out into new territories in their...

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