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Network strategies for the new economy

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Sammut-Bonnici, Tanya and McGee, John (2002) Network strategies for the new economy. European Business Journal, Volume 14 (Number 4). pp. 174-185. ISSN 0955-808X.

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Abstract

In this paper we argue that the pace and scale of development in the information and communication technology industries (ICT) has had and continues to have major effects on the industry economics and competitive dynamics generally. We maintain that the size of changes in demand and supply conditions is forcing companies to make significant changes in the way they conceive and implement their strategies. We decompose the ICT industries into four levels, technology standards, supply chains, physical platforms, and consumer networks. The nature of these technologies and their cost characteristics coupled with higher degrees of knowledge specialisation is impelling companies to radical revisions of their attitudes towards cooperation and co-evolution with suppliers and customers. Where interdependencies between customers are particularly strong, we anticipate the possibility of winner-takes-all strategies. In these circumstances industry risks become very high and there will be significant consequences for competitive markets.

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Globalization, Telecommunication , Communication -- Network analysis, Strategic planning
Journal or Publication Title: European Business Journal
Publisher: Whurr Publishers Ltd.
ISSN: 0955-808X
Official Date: 2002
Dates:
DateEvent
2002Published
Volume: Volume 14
Number: Number 4
Page Range: pp. 174-185
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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