Indian Telecom Services Market: An Analysis of Late Entrant and Market Disruption
Keywords:
Market disruption, later entrant, market disruption, India, technology.Abstract
The Indian economy is growing at a fast pace. There were many disruptions in the Indian market across industries. The objective of this study was to determine whether the late entrant in India’s telecom services market disrupted the market. Three variables were considered for the study namely, telecom subscribers, internet subscribers and sales revenues of telecom companies. We applied these variables to the three litmus tests developed by Harvard professor Clayton Christensen to determine whether market disruption had happened. To undertake this study, data were collected from telecom companies between 2010 and 2022. The data were retrieved from the website of the telecom regulatory authority of India. Regression analysis was used to understand the trends, Pettit test was used to know whether there is a change point and Chows test was used to identify when the break in time series data had occurred. The study found that the late entrant had indeed disrupted the telecom services market.
References
Ahworegba, A., Omoloba, J., & Estay, C. (2020). How firms risk through entrepreneurial innovations: behavioural patterns and implications. The International Journal of Entrepreneurship and Innovation, 21(4), 223-236. https://doi.org/10.1177/1465750320903621
Arli, D., Gupta, N., Sardana, D., & Sharma, P. (2022). Demystifying the evaluation of brands endorsed by religious leaders in the emerging markets. International Marketing Review, 40(1), 155-175. https://doi.org/10.1108/imr-08-2021-0258
Assink, M. (2006). Inhibitors of disruptive innovation capability: a conceptual model. European Journal of Innovation Management, 9(2), 215-233. https://doi.org/10.1108/14601060610663587
Bai, J., & Perron, P. (1998). Estimating and Testing Linear Models with Multiple Structural Changes. Econometrica, 66(1), 47–78. https://doi.org/10.2307/2998540
Benner, M. J. and Tripsas, M. (2012). The influence of prior industry affiliation on framing in nascent industries: The evolution of digital cameras. Strategic Management Journal, 33, 277-302
Berne, M., Vialle, P. & Whalley, J. (2018) An Analysis the Disruptive Impact of the Entry of Free Mobile into the French Mobile Telecommunications Market, Telecommunications Policy, https://doi.org/10.1016/j.telpol.2018.07.007
Bijwaard, G., Janssen, CWM., & Maasland, E. (2008) Early Mover Advantages: An Empirical analysis of European mobile phone markets, Telecom Policy, 32(3), pp. 246-261
Bond, A. (2023). Margin notes from the covid-19 pandemic for the future of healthcare innovation. Healthcare Management Forum, 36(6), 393-398. https://doi.org/10.1177/08404704231185487
Bower, J.L., & Christensen, C.M. (1995). Disruptive Technologies: Catching the Wave. Harvard Business Review, 73(1), 43–53
Carpenter Gregory S., and Nakamoto Kent (1990), Competitive Strategies for Late Entry into a Market with a Dominant Brand, Management Science, 36(October), 1268–78
Chow, G.C. (1960), Tests of Equality between Sets of Coefficients in Two Linear Regressions, Econometrica, 28, 591-605
Christensen, C. (2005). The ongoing process of building a theory of disruption. Journal of Product Innovation Management, 23(1), 39-55 https://doi.org/10.1111/j.1540-5885.2005.00180.x
Christensen, C. M. and Raynor, M. (2003). The Innovators Solution: Creating and Sustaining Successful Growth. Boston, MA: Harvard Business School Press.
Christensen, C. M., & Rosenbloom, R. S. (1995) Explaining the attackers ad- vantage: Technological paradigms, organizational dynamics, and the value network, Res. Policy, 24(2), pp. 233–257
Christensen, C., McDonald, R., Altman, E., & Palmer, J. (2017). Disruptive innovation: intellectual history and future paths. Academy of Management Proceedings, 2017(1), 14218. https://doi.org/10.5465/ambpp.2017.14218abstract
Christensen, C.M. (1997). The Innovators Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press.
Galton, Francis (1989). Kinship and Correlation (reprinted 1989). Statistical Science. 4 (2): 80–86. doi:10.1214/ss/1177012581. JSTOR 2245330
Gerber, A. and Matthee, M. (2019). Design thinking for pre-empting digital disruption., 759-770.
https://doi.org/10.1007/978-3-030-29374-1_62
Henderson, R. (2005). The innovators dilemma as a problem of organizational competence. Journal of Product Innovation Management, 23(1), 5-11. https://doi.org/10.1111/j.1540-5885.2005.00175.x
Hsu, S. and Cohen, S. (2021). Overcoming the incumbent dilemma: the dual roles of multimarket contact during disruption. Journal of management Studies, 59(2), 319-348. https://doi.org/10.1111/joms.12719
Iman Mallakpour & Gabriele Villarini (2016) A simulation study to examine the sensitivity of the Pettitt test to detect abrupt changes in mean, Hydrological Sciences Journal, 61:2, 245-254
Kammerlander, N., Koenig, A., & Richards, M. (2018). Why do incumbents respond heterogeneously to disruptive innovations? The interplay of domain identity and role identity. Journal of Management Studies, 55(7), 1122-1165. https://doi.org/10.1111/joms.12345
Kaplan, S. and Tripsas, M. (2008). Thinking about technology: Applying a cognitive lens to technical change. Research Policy, 37, 790 -805
Kumar, S., Liu, J., & Scutella, J. (2015). The impact of supply chain disruptions on stockholder wealth in india. International Journal of Physical Distribution & Logistics Management, 45(9/10), 938-958. https://doi.org/10.1108/ijpdlm-09-2013-0247
Kumaraswamy, A., Garud, R., & Ansari, S. (2018). Perspectives on disruptive innovations. Journal of Management Studies, 55(7), 1025-1042. https://doi.org/10.1111/joms.12399
Kumaraswamy, A., Garud, R., & Ansari, S. S. (2018). Perspectives on disruptive innovations. Journal of Management Studies. doi:10.1111/joms.12399
Kumari, S., Jeble, S., Venkatesh, V., Nagarajan, C., & Shi, Y. (2022). Antecedents of agriculture supply chain performance during covid-19: an emerging economy perspective. Operations Management Research, 16(1), 489-510. https://doi.org/10.1007/s12063-022-00295-3
Legendre, A. M. (1805). Nouvelles méthodes pour la détermination des orbites des comètes [New methods for determining the orbits of comets]. Firmin Didot. (Appendix: Sur la Méthode des moindresquarrés [On the method of least squares]).
Makadok, R. (1998), Can first-mover and early-mover advantage be sustained in an industry with low barriers to entry/imitation? Strategic Management Journal, 19(7), pp. 683-696
Markides, C. (2005). Disruptive innovation: in need of better theory. Journal of Product Innovation Management, 23(1), 19-25. https://doi.org/10.1111/j.1540-5885.2005.00177.x
Nagamo, H., Ishida, S., & Gemba, K. (2013). The mechanisms of the late mover advantage in mid-product for the electronics industry: A case study of CRT, International Journal of Business and Systems Research, 7(3), pp. 229-249
Onzo, N. (1997). The managing power of a reverse engineering – the notable competitive strategy of follow and reverse: Gyakuten no keieiryoku – tyuumokusarerutuizuigyakutengata no kyousousen – ryaku, in Japanese, Business Research, pp. 4-13
Özalp, H., Cennamo, C., & Gawer, A. (2018). Disruption in platform‐based ecosystems. Journal of Management Studies, 55(7), 1203-1241. https://doi.org/10.1111/joms.12351
Pettitt, A. N. (1979). A Non-Parametric Approach to the Change-Point Problem. Journal of the Royal Statistical Society. Series C (Applied Statistics), 28(2), 126–135
Pohlert T (2023). _trend: Non-Parametric Trend Tests and Change-Point Detection_. R package version 1.1.5, https://CRAN.R-project.org/package=trend
Querbes, A., & Frenken, K. (2016) Evolving User Needs and Late-mover advantage, Strategic Organization, 15(1), https://doi.org/10.1177/1476127016648498
Raynor, M. E. (2011) The Innovators Manifesto: Deliberate Disruption for Transformational Growth, Crown Business, New York.
Roblek, V., Meško, M., Pušavec, F., & Likar, B. (2021). The role and meaning of the digital transformation as a disruptive innovation on small and medium manufacturing enterprises. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.592528
Rubin, G. and Abramson, R. (2018). Creating value through incremental innovation: managing culture, structure, and process. Radiology, 288(2), 330-340. https://doi.org/10.1148/radiol.2018171239
Sadiq, F. and Hussain, T. (2018). Exploring the role of managers in nurturing disruptive innovations. Business & Economic Review, 10(4), 103-120. https://doi.org/10.22547/ber/10.4.5
Schnaas, S. P. (1994) Managing Imitation Strategies – How Later Entrants Seize Market from Pioneers, Free Press.
Schumpeter, J.A. (1934). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Harvard University Press.
Shankar, V. Carpenter, S.G., & Krishnamurthi, L. (1998) Late Mover Advantage: How Innovative Late Entrants Outsell Pioneers, Journal of Marketing Research, 35(1), pp. 54-70
Sood, A., and Tellis, G. J., Decoding Market Disruption: New Schema, Model, and Findings, Marshall School of Business Working Paper No. 18-10, Available at http://dx.doi.org/10.2139/ssrn.1624768
Sutar, G., Dhalmahapatra, K., & Chakraborty, S. (2022). Impact of India’s demonetization episode on its equity markets. Asia-Pacific Financial Markets, 30(4), 649-675. https://doi.org/10.1007/s10690-022-09392-6
Teece, D. J. (1986). Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15, 285 -305
The Economist. (2015, January 31). The Theory of Disruption. Retrieved from The Economist.
The Indian Telecom Services Performance Indicators, TRAI, July-Sept, 2016, P-13 (New Delhi, Dec 30, 2016)
The Indian Telecom Services Performance Indicators, TRAI, July-Sept, 2019, P-15 (New Delhi, Jan 08, 2020)
The Indian Telecom Services Performance Indicators, TRAI, July-Sept, 2020, P-15 (New Delhi, Jan 21, 2021)
Vargas, C., Perez, G., & Gimenez, M. (2017). The use of competitive intelligence (ci) by established organizations to help anticipating, understanding and responding to disruptive innovations ruptive innovations. Journal on Innovation and Sustainability Risus, 8(4), 164. https://doi.org/10.24212/2179-3565.2017v8i4p164-180
Vermicelli, S., Cricelli, L., & Grimaldi, M. (2020). How can crowd sourcing help tackle the covid‐19 pandemic? An explorative overview of innovative collaborative practices. R and D Management, 51(2), 183-194. https://doi.org/10.1111/radm.12443
Wan, F., Williamson, P., & Yin, E. (2015). Antecedents and implications of disruptive innovation: evidence from china. Technovation, 39-40, 94-104. https://doi.org/10.1016/j.technovation.2014.05.012
Wu, X., Ma, R. & Shi, Y. (2010) How do Latecomer Firms Capture Value from Disruptive Technologies? A Secondary Business-Model Innovation Perspective, IEEE Transactions on Engineering Management, 57(1), pp. 51-62
Yoo, Y., Boland Jr, R. J., Lyytinen, K. and Majchrzak, A. (2012). Organizing for innovation in the digitized world. Organization science, 23, 1398-408
Zeileis A, Kleiber C, Krämer W, Hornik K (2003). Testing and Dating of Structural Changes in Practice. Computational Statistics & Data Analysis, 44(1–2), 109–123
Zeileis A, Leisch F, Hornik K, Kleiber C (2002). Strucchange: An R Package for Testing for Structural Change in Linear Regression Models. Journal of Statistical Software, 7(2), 1–38
Zhou, X., Yang, Z., Hyman, M., Li, G., & Munim, Z. (2022). Guest editorial: impact of artificial intelligence on business strategy in emerging markets: a conceptual framework and future research directions. International Journal of Emerging Markets, 17(4), 917-929
https://doi.org/10.1108/ijoem-04-2022-995
Zubizarreta, M., Ganzarain, J., Cuadrado, J., & Lizarralde, R. (2020). Evaluating disruptive innovation project management capabilities. Sustainability, 13(1), 1. https://doi.org/10.3390/su13010001
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Authors
This work is licensed under a Creative Commons Attribution 4.0 International License.
