TY - JOUR
T1 - Market leadership, technological progress and relative performance in the mobile telecommunications industry
AU - Asimakopoulos, Grigorios
AU - Whalley, Jason
PY - 2017/10
Y1 - 2017/10
N2 - 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.
AB - 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.
KW - Performance
KW - Data Envelopment Analysis
KW - Technological progress
KW - Mobile telecommunications
U2 - 10.1016/j.techfore.2017.06.021
DO - 10.1016/j.techfore.2017.06.021
M3 - Article
VL - 123
SP - 57
EP - 67
JO - Technological Forecasting and Social Change
JF - Technological Forecasting and Social Change
SN - 0040-1625
ER -