Disruptive Technologies and Networking in Telecom Industries
Erik Strøjer Madsen* and Simon Preuthun Hartington
School of Business and Social Sciences, Aarhus University, Denmark
- *Corresponding Author:
- Erik Strøjer M
Department of Economic and Business
School of Business and Social Sciences
Aarhus University, Denmark
E-mail: [email protected]
Received August 11, 2015; Accepted November 14, 2015; Published November 21, 2015
Citation: Erik Strøjer M, Simon H (2015) Disruptive Technologies and Networking in Telecom Industries. J Glob Econ 3:165. doi:10.4172/2375-4389.1000165
Copyright: © 2015 Erik Strøjer M, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This article discuss’ how economics of scale in supply and demand in the telecommunication industry has developed and how this has had great effect on the widespread usage and popularity of smart phones. By using this as a theoretical ground the paper looks into technical innovation in the telecommunication industry and finds significant similarities between the industry development and the literature on disruptive technology, which finds that incumbent companies are not able to react in a successful way when disruptions occur in their industry. By studying how the telecommunication industry developed around the introduction of the smart phone and looking closer into the reactions of major players such as Apple, Google, Microsoft and Nokia, we find evidence supporting the finding in the literature of an inadequate strategies among incumbent companies. Large incumbent companies are focused too much on incremental innovation of their products which have a more clear short-term return and a solution of this problem is to focus less on short-term efficiency and to allow the individual researcher to follow his/her own ideas’ to a larger extent.