The Market that Never Was: Clashing Frames and Failed Coalitions in Mobile Payments

20 Pages Posted: 22 Dec 2010

Date Written: October 2010

Abstract

In this paper, we focus on a key, but understudied process that affects the development of a new market: the interfirm negotiation process through which the interested parties agree on a business model to exchange resources in order to create the new product or service. We observed this process in the case of an emerging market around mobile payment services for over 40 months between 2006 and 2009. The results that emerge from our data illustrate that when several of the negotiating parties come from dominant positions in their distinctive markets, the development of the new market may come to a complete halt despite the readiness of the technology and proven consumer interest. We also show that when such deadlocks occur, the commercialization of the product may stop at the global level, but continue locally in places where the interdependency problem can be solved. By observing various countries, we describe three local pathways to commercialization: intrafirm coalitions, M&A, and the mediation of a trusted third party.

Keywords: market emergence, inter-firm negotiation, organizational frames, business models

Suggested Citation

Ozcan, Pinar and Santos, Filipe M., The Market that Never Was: Clashing Frames and Failed Coalitions in Mobile Payments (October 2010). IESE Business School Working Paper No. WP-882. Available at SSRN: https://ssrn.com/abstract=1729645 or http://dx.doi.org/10.2139/ssrn.1729645

Pinar Ozcan (Contact Author)

Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

HOME PAGE: http://www.pinarozcan.com

Filipe M. Santos

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

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