Firms' Heterogeneity and Dynamics of Entry in a New Sector: Analysis of the Multimedia Service Provision Sector


This paper analyses a telecommunications firm’s choice to enter the multimedia service provision business, and empirically specifies a strategy-capability model that relates the potential entrant’s choice to both its external environment and its evolving collection of internal capabilities. The MOSAICO database has provided the econometric model with a sample composed of the initiatives undertaken in the new business by the world’s largest common carriers in the 1990-‘96 period. The empirical results support the view that, in the current phase of the new business, cooperation is an effective learning device; further, a bandwagon effect is partly accepted. Lastly, a competence-enhancing nature of the multimedia service provision with respect to technological knowledge can be rejected.

Jun 21, 1998 — Jun 24, 1998
ITS (International Telecommunications Society) ’98 – 12th International Conference
Stockholm, Sweden
Raffaello Seri
Raffaello Seri
Professor of Econometrics

My research interests include statistics, numerical analysis, operations research, psychology, economics and management.