Abstract
The purpose of this study was to analyze the mobile communications market before and after saturation and to discuss the changes in diffusion factors by the ICT generations in order to understand the effects of overshooting and innovations. According to the analysis, (1) the expansion of ICT products is increasingly influenced by innovation due to overshooting occurs after market saturation, (2) SNS, a topic of intense contemporary significance, impacts the spread of ICT products by creating social networks, and (3) as the technology generation progresses, the innovation effect increases and the imitation effect decreases for ICT product spreading. These results imply that technology innovation is the most important strategy for ICT product distribution. Because post-adopters have a high desire to consume new ICT products, technological innovation can cause demand among post-adopters.
Similar content being viewed by others
References
Abel I (2008) From technology imitation to market dominance: the case of iPod. Compet Rev 18(3):257–274
Adner R (2002) When are technologies disruptive? A demand-based view of the emergence of competition. Strategic Manag J 23(8):667–688
4G America (2009) 4G America home page. http://www.4gamericas.org. Accessed Dec 2012
Bass FM (1969) A new product growth model for consumer durables. Manag Sci 15(5):215–227
Chadee DD, Pang B (2008) Technology strategy and performance: a study of information technology service providers from selected Asian countries. Serv Bus 2(2):109–126
Chandrasekaran D, Tellis GJ (2007) A critical review of marketing research on diffusion of new products. Rev market Res 3(1):39–80
Chandrasekaran S, Bayne W, Shaw J (1978) Pharmacokinetics of drug permeation through human skin. J Phar Sci 67(10):1370–1374
Chellappa RK, Saraf N (2010) Alliances, rivalry and firm performance in enterprise systems software markets: a social network approach. Inform Syst Res 21(4):849–871
Christensen CM (1997) The innovator’s dilemma: when new technologies cause great firms to fail. Harvard Business Press, Boston
Coombs R (1996) Technological collaboration: The dynamics of cooperation in industrial innovation. Edward Elgar Pub, Cheltenham
Corrocher N, Zirulia L (2010) Demand and innovation in services: the case of mobile communications. Res Policy 39(7):945–955
Danneels E (2004) Disruptive technology reconsidered: a critique and research agenda. J Prod Innov Manag 21(4):246–258
Dunnewijk T, Hultén S (2007) A brief history of mobile communication in Europe. Telematics Inform 24(3):164–179
Eisenhardt KM (1989) Making fast strategic decisions in high-velocity environments. Acad Manag J 32(3):543–576
Fernández Z, Usero B (2007) The erosion of pioneer advantage in the European mobile telecommunications industry. Serv Bus 1(3):195–210
Freeman C, Soete L (1997) The economics of industrial innovation. Routledge, London
Fuentelsaz L, Maícas JP, Polo Y (2008) The evolution of mobile communications in Europe: the transition from the second to the third generation. Telecom Policy 32(6):436–449
Genakos C, Valletti T (2011) Testing the “waterbed” effect in mobile telephony. J Euro Econo Assoc 9(9):1114–1142
Giachetti C, Marchi G (2010) Evolution of firms’ product strategy over the life cycle of technology-based industries: a case study of the global mobile phone industry, 1980–2009. Bus Hist 52(7):1123–1150
Gnyawali DR, Fan W, Penner J (2010) Competitive actions and dynamics in the digital age: an empirical investigation of social networking firms. Inform Syst Res 21(3):594–613
GSA (2012) Global mobile Suppliers Association home page. http://www.gsacom.com/. Accessed Dec 2012
Gupta R, Jain K (2012) Diffusion of mobile telephony in India: an empirical study. Technol Forecast Soc Chang 79(4):709–715
Hague PN (2002) Market research: a guide to planning, methodology & evaluation. Kogan Page Ltd, London
ITU (2012) Key statistical highlights: ITU data release June 3, 2012. http://www.itu.int
Jorgenson DW (2001) Information technology and the US economy. Americ Econo Rev 91(1):1–32
KCC (2012) Korea Communication Commission home page. http://eng.kcc.go.kr. Accessed Dec 2012
Kenney M, Pon B (2011) Structuring the smartphone industry: is the mobile internet OS platform the key? J Indust Compet Trade 11(3):239–261
King AA, Tucci CL (2002) Incumbent entry into new market niches: the role of experience and managerial choice in the creation of dynamic capabilities. Manag Sci 48(2):171–186
Lee SM, Kim T, Noh Y, Lee B (2010) Success factors of platform leadership in web 2.0 service business. Serv Bus 4(2):89–103
Lee SG, Trimi S, Byun WK, Kang M (2011a) Innovation and imitation effects in Metaverse service adoption. Serv Bus 5(2):1–18
Lee SG, Yu M, Yang C, Kim C (2011b) A model for analyzing churn effect in saturated markets. Indus Manag Data Syst 111(7):1024–1038
Lee SG, Park B, Kim SH, Lee HH (2012) Innovation and imitation effects in the mobile telecommunication service market. Serv Bus 6(3):265–278
Levenbach H, Reuter BE (1976) Forecasting trending time series with relative growth rate models. Technometrics 18(3):261–272
MacVaugh J, Schiavone F (2010) Limits to the diffusion of innovation: a literature review and integrative model. Euro J Innov Manag 13(2):197–221
Mahajan V, Sharma S (1986) A simple algebraic estimation procedure for innovation diffusion models of new product acceptance. Techno Forec Soc Chan 30(4):331–345
Mansfield E (1961) Technical change and the rate of imitation. Econometrica 29(4):741–766
Nelson RR (1993) National innovation systems: a comparative analysis. Oxford University Press, New York
O’Connor GC, Veryzer RW (2001) The nature of market visioning for technology-based radical innovation. J Produ Innov Manag 18(4):231–246
Park Y, Chen JV (2007) Acceptance and adoption of the innovative use of smartphone. Indus Manag Data Syst 107(9):1349–1365
Robertson A, Soopramanien D, Fildes R (2007) Segmental new-product diffusion of residential broadband services. Telecom Policy 31(5):265–275
Rogers E (1962) Diffusion of innovations. Free Press, New York
Sandberg B (2002) Creating the market for disruptive innovation: market proactiveness at the launch stage. J Target Meas Anal Market 11(2):184–196
Sandberg B, Hansén SO (2004) Creating an international market for disruptive innovations. Euro J Innov Manag 7(1):23–32
Schumpeter JA (1942) Socialism, capitalism and democracy. Harper and Brothers, New York
Sood A, James GM, Tellis GJ (2009) Functional regression: a new model for predicting market penetration of new products. Market Sci 28(1):36–51
Srinivasan V, Mason CH (1986) Technical note—nonlinear least squares estimation of new product diffusion models. Market Sci 5(2):169–178
Sultan F, Farley JU, Lehmann DR (1990) A meta-analysis of applications of diffusion models. J Market Res 27(1):70–77
Teng JTC, Grover V, Guttler W (2002) Information technology innovations: general diffusion patterns and its relationships to innovation characteristics. IEEE T Eng Management 49(1):13–27
Tidd J, Bessant JR, Pavitt K (2005) Managing innovation: integrating technological, market and organizational change. Wiley, New York
Van den Bulte C (2000) New product diffusion acceleration: measurement and analysis. Mark Sci 19(4):366–380
Van den Bulte C, Joshi YV (2007) New product diffusion with influentials and imitators. Mark Sci 26(3):400–421
Van den Bulte C, Lilien GL (1997) Bias and systematic change in the parameter estimates of macro-level diffusion models. Mark Sci 16(4):338–353
Van den Bulte C, Stremersch S (2004) Social contagion and income heterogeneity in new product diffusion: a meta-analytic test. Mark Sci 23(4):530–544
Venkatraman N, Loh L, Koh J (1994) The adoption of corporate governance mechanisms: a test of competing diffusion models. Manag Sci 40(4):496–507
Von Hippel E (2009) Democratizing innovation: the evolving phenomenon of user innovation. Inter J Innov Sci 1(1):29–40
Wells JD, Campbell DE, Valacich JS, Featherman M (2010) The effect of perceived novelty on the adoption of information technology innovations: a risk/reward perspective. Dec Sci 41(4):813–843
Wu FS, Chu WL (2010) Diffusion models of mobile telephony. J Bus Res 63(5):497–501
Author information
Authors and Affiliations
Corresponding author
Appendix
Appendix
See Table 10.
Rights and permissions
About this article
Cite this article
Lee, SG., Lee, Eb. & Yang, CG. Strategies for ICT product diffusion: the case of the Korean mobile communications market. Serv Bus 8, 65–81 (2014). https://doi.org/10.1007/s11628-013-0187-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11628-013-0187-9