Value Innovation in the Malaysian Telecommunications Service Industry: Case Study

  • Mohammed A. HajarEmail author
  • Daing Nasir Ibrahim
  • Mohammed A. Al-Sharafi
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 843)


Wireless telecommunications industry has been widely known for its high levels of innovativeness and competitively dynamic business environment. Globalization, privatization, liberalization and consolidation are the terms mostly associated with this sector. The Malaysian telecommunications industry is of no exception for it has exhibited high levels of competitiveness and dynamic change leading to rapid evolution of wireless technologies and high growth of subscribers and penetration rate. Thus, this paper aims to shed some light on the logic of value innovation in the telecommunication service industry. The present study adopted a qualitative research approach to investigate the value innovation activities on Malaysian telecommunications service sector. Specifically, it concentrates on the motivation of telecommunications companies to shift their strategies from tariff competition to value competition in order to improve customer value and promote customer loyalty which lead to increased business performance and profitable growth. An analytical case study was used to examine services and loyalty packages offered by telecommunications companies. In this regard, the paper discusses the shortfalls and actions that discouraged customer satisfaction and loyalty. The paper also provides recommendations for service providers on how to attain long-term profitable growth.


Innovation Value innovation Telecommunications Malaysian telecommunications industry 


  1. 1.
    Birudavolu, S., Nag, B.: A Study of Open Innovation in Telecommunication Services: A Review of Literature & Trends (2011)Google Scholar
  2. 2.
    Sachdeva, M., Agarwal, R.: An innovation experience: what does innovation mean to practising organisations? ANZAM (2011)Google Scholar
  3. 3.
    Letangule, S.L., Letting, D., Nicholas, K.: Effect of innovation strategies on performance of firms in the telecommunication sector in Kenya. Int. J. Manag. Bus. Stud. 2(3), 75–78 (2012)Google Scholar
  4. 4.
    Ranju, K., Versha, M.: Building technological capability through innovations in telecom sector. Pac. Bus. Rev. Int. 5(5), 37–49 (2012)Google Scholar
  5. 5.
    Abdi, A.M., Ali, A.Y.S.: Innovation and business performance in telecommunication industry in Sub-Saharan African context: case of Somalia. Asian J. Manag. Sci. Educ. 2(4), 53–67 (2013)Google Scholar
  6. 6.
    Joseph, S.: The Theory of Economic Development. Cambridge University Press, Cambridge (1934)Google Scholar
  7. 7.
    Schumpeter, J.A.: Business Cycles: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process. McGraw-Hill, New York (1939)Google Scholar
  8. 8.
    Wagner, K., et al.: The Most Innovative Companies 2014: Breaking Through is Hard to do. Boston Consulting Group, Boston (2014)Google Scholar
  9. 9.
    Smith, R.K.: Innovation in telecommunication services. Theses (School of Communication)/Simon Fraser University (1994)Google Scholar
  10. 10.
    Kim, W.C., Mauborgne, R.: Value Innovation: The Strategic Logic of High Growth. Harvard Business School Publication, Brighton (1997)Google Scholar
  11. 11.
    Kim, W.C., Mauborgne, R.: Strategy, value innovation, and the knowledge economy. Sloan Manag. Rev. 40(3), 41 (1999)Google Scholar
  12. 12.
    Ahn, H., et al.: A novel customer scoring model to encourage the use of mobile value added services. Expert Syst. Appl. 38(9), 11693–11700 (2011)CrossRefGoogle Scholar
  13. 13.
    Kim, W.C., Mauborgne, R.: Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business School Press, Boston (2005)Google Scholar
  14. 14.
    Davies, A.: Innovation in large technical systems: the case of telecommunications. Ind. Corp. Change 5(4), 1143–1180 (1996)CrossRefGoogle Scholar
  15. 15.
    Hauknes, J., Smith, K.: Corporate Governance and Innovation in Mobile Telecommunications: How Did the Nordic Area Become a World Leader? (2003)Google Scholar
  16. 16.
    Chaturvedi, R.M.: Innovation in telecom sector. BMA E J. Bombay Manag. Assoc. 14(2), 1–7 (2003)MathSciNetGoogle Scholar
  17. 17.
    Bentley, C.: Telecom at a crossroad, the role of innovation. In: Innovation 360 Industry Seminar, Dubai, UAE (2014)Google Scholar
  18. 18.
    Chuah, H.W., Marimuthu, M., Ramayah, T.: Wireless telecommunication industry in Malaysia: trends, challenges, and opportunities. In: Marimuthu, M., Hassan, S. (eds.) Consumption in Malaysia: Meeting of New Changes. Universiti Sains Malaysia Publisher, Penang (2015)Google Scholar
  19. 19.
    Said, M.F., Adham, K.A.: Online mobile content innovations and industry structure: implications for firms’ strategies. Int. J. Econ. Manag. 4(1), 101–119 (2010)Google Scholar
  20. 20.
    Yoong, H., et al.: Malaysia’s telecommunications sector: an efficiency and productivity analysis. In: The 2011 Australasian Meetings of the Econometric Society (ESAM). The University of Adelaide (2011)Google Scholar
  21. 21.
    MCMC, Digital Connectivity: Industry Performance Report 2016. ISSN 1823–3724Google Scholar
  22. 22.
    MCMC, Connectivity to Facilitate Digital Transformation: Industry Performance Report 2017. ISSN 1823–3724Google Scholar
  23. 23.
    Hossain, M.M.: A Literature Review of OTT-related Policy and Regulatory IssuesGoogle Scholar
  24. 24.
    Sujata, J., et al.: Impact of over the top (OTT) services on telecom service providers. Indian J. Sci. Technol. 8(S4), 145–160 (2015)CrossRefGoogle Scholar
  25. 25.
    Berhad, M.: Annual Report 2012 (2012)Google Scholar
  26. 26.
    Lin, H.-H., Wang, Y.-S.: An examination of the determinants of customer loyalty in mobile commerce contexts. Inf. Manag. 43(3), 271–282 (2006)CrossRefGoogle Scholar
  27. 27.
    Kuo, Y.-F., Wu, C.-M., Deng, W.-J.: The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services. Comput. Hum. Behav. 25(4), 887–896 (2009)CrossRefGoogle Scholar
  28. 28.
    Lee, H.S.: Factors influencing customer loyalty of mobile phone service: empirical evidence from Koreans. J. Intern. Bank. Commer. 15(2), 1–14 (2010)Google Scholar
  29. 29.
    Zhao, L., et al.: Assessing the effects of service quality and justice on customer satisfaction and the continuance intention of mobile value-added services: an empirical test of a multidimensional model. Decis. Support Syst. 52(3), 645–656 (2012)CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Mohammed A. Hajar
    • 1
    Email author
  • Daing Nasir Ibrahim
    • 1
  • Mohammed A. Al-Sharafi
    • 2
  1. 1.Faculty of Industrial ManagementUniversiti Malaysia PahangKuantanMalaysia
  2. 2.Faculty of Computer Systems and Software EngineeringUniversiti Malaysia PahangKuantanMalaysia

Personalised recommendations