High-Tech Entrepreneurship in Asia
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High-Tech Entrepreneurship in Asia

Innovation, Industry and Institutional Dynamics in Mobile Payments

Marina Yue Zhang and Mark Dodgson

The option for consumers to make payments for services and products via mobile telephones has created a dynamic new industry. High-Tech Entrepreneurship in Asia illustrates how small, entrepreneurial firms in Asia have devised and produced innovations crucial for this industry’s development.
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Chapter 3: The Development of Emerging Technologies

Marina Yue Zhang and Mark Dodgson


This chapter builds an analytical framework of the development and diffusion of emerging technologies as a basis for the subsequent examination of the empirical case studies. By reviewing the relevant literature in the areas of innovation studies, technology diffusion and corporate strategies in managing the development of an emerging technology, this chapter identifies and evaluates theories in those fields and develops specific research issues that lay the groundwork for the case studies. The central issue addressed in this chapter is the need for a firm to manage the development of an emerging technology in the context of global competition by taking into account technological uncertainty and complexity, as well as the discontinuous nature of technological development. INTRODUCTION Innovation can be simply defined as the successful application of new ideas to products, processes, and services (Dodgson et al., 2005). An innovation will gain economic significance only if it is diffused and utilized. In other words, innovations must have the capacity to increase the utility for endusers when adopted and diffused (Rogers, 1995). With the potential of altering existing patterns of consumption or production, innovation has had an increasingly significant impact on business and competition, which, in turn, has caused necessary adjustment in competitive strategies among business managers and government policy makers (Robertson and Gatignon, 1986; Utterback and Suarez, 1993; Rogers, 1995; Nelson, 2004). The innovation process provides a means by which managerial decisions, organizational structures, resources (economic, social and environmental) and skills are reconfigured and used to produce innovative outcomes (Dodgson...

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