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 5: Entrepreneurship Research by Process-Oriented Case Inquiry

Marina Yue Zhang and Mark Dodgson


INTRODUCTION Technological evolution is one of the driving forces in industrial development and industry life cycles (Tushman and Andersen, 1986; Anderson and Tushman, 1990; Utterback and Suarez, 1993; Utterback, 1994; 2003b; Dodgson et al., 2005). The evolutionary process of any emerging industry, however, is a complex, dynamic and lengthy one that involves multi-faceted interactions and interdependencies among multiple stakeholders. Therefore, technological prowess, often possessed by hightech entrepreneurial start-ups (Dodgson, 1991; Dodgson and Rothwell, 1991; Deeds et al., 2000; Phan and Foo, 2004), is not enough to guarantee an emerging technology’s success in a market where path dependency and network effects drive the development of the industry (Farrell and Saloner, 1986; Katz and Shapiro, 1986; Arthur, 1996; Teece et al., 1997; Augsdorfer, 2005). Mainstream technology diffusion studies try to understand adopters’ behaviour and its consequent impact on the diffusion curve (Bass, 1969; Rosenberg, 1972; 1976; Singhal, 1994; DeBresson, 1995; Moore, 1995a; Rogers, 1995; Geroski, 2000; Baptista, 2001); however, the role played by high-tech entrepreneurial start-ups in the process of technology diffusion, especially if a technology survives but the start-up that invents and introduces this technology fails, has not been sufficiently studied (Miller and Garnsey, 2000). From a methodological viewpoint, entrepreneurship is believed to be one of the most difficult areas to study in the social sciences (Bruyat and Julien, 2000). To understand the dynamic process of entrepreneurship is particularly challenging because it involves multiple modes of activity that occur simultaneously and interdependently over time (Low and Macmillan, 1988). The volatile nature...

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