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Systemic innovation and outsourcing: The case of the mobile data services in Korea

Title
Systemic innovation and outsourcing: The case of the mobile data services in Korea
Authors
Whang, Y.-K.[Whang, Yun kyung ]
DGIST Authors
Whang, Y.-K.[Whang, Yun kyung ]
Issue Date
2014
Citation
Asian Journal of Technology Innovation, 22(1), 54-66
Type
Article
Article Type
Article
Keywords
Co-SpecializationKoreaMarket TransactionMobile Data ServicesMobile Handsets
ISSN
1976-1597
Abstract
This paper investigates the decision that the mobile operators in Korea outsourced the development and manufacture of handsets which are co-specialized with their proprietary data service offerings. This choice of a contractual approach through the market is contradict to what the conventional literature argues. The paper explores the resolution of this contradiction and concludes that operators' contracts were facilitated by handset producers' willingness to supply co-specialized assets due to their new strategy and, more importantly, the greater power of operators relative to handset producers, which made it easier to push handset producers to develop the products to support the services. These two factors reduced the cost of contracting and limited the potential risk of opportunism. The manufacturers' new strategy to facilitate cooperation and the sources of unusual operators' power are also discussed. © 2014 © 2014 Korean Society for Innovation Management and Economics (KOSIME).
URI
http://hdl.handle.net/20.500.11750/2402
DOI
10.1080/19761597.2014.905231
Publisher
Korean Society for Innovation Management and Economics
Files:
There are no files associated with this item.
Collection:
ETC1. Journal Articles


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