Market leadership, technological progress and relative performance in the mobile telecommunications industry

Asimakopoulos, Grigorios and Whalley, Jason (2017) Market leadership, technological progress and relative performance in the mobile telecommunications industry. Technological Forecasting and Social Change, 123. pp. 57-67. ISSN 0040-1625

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Abstract

In network industries a large installed customer base is considered a key strategic asset that leads to a sustainable competitive advantage. This paper argues that market leaders should be able to demonstrate relative performance advantages vis-à-vis their competitors. Furthermore, we examine the moderating role of technological progress as a significant environmental factor that could alter the market leadership-relative performance relationship. The two-stage procedure proposed by Simar and Wilson (2007) is used to estimate relative performance determinants in the European mobile telecommunication industry. In the first stage, Data Envelopment Analysis (DEA) technique is used to measure performance, and in the second stage we empirically test our hypotheses by bootstrapping the DEA estimates with a truncated regression. Our results provide evidence that leaders enjoy performance advantages. The findings also reveal that the leader's relative performance is compromised in the event of technological progress.

Item Type:	Article
Uncontrolled Keywords:	Performance; Data Envelopment Analysis; Technological progress; Mobile telecommunications
Subjects:	N100 Business studies P900 Others in Mass Communications and Documentation
Department:	Faculties > Business and Law > Newcastle Business School
Depositing User:	Ay Okpokam
Date Deposited:	17 Jul 2017 13:20
Last Modified:	19 Nov 2019 09:47
URI:	http://nrl.northumbria.ac.uk/id/eprint/31334

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