Network Strategies for the New Economy

Sammut-Bonnici, T., & McGee, J. (2002). Network Strategies for the New Economy. European Business Journal, 14(4), 174-185

13 Pages Posted: 11 Oct 2013

See all articles by Tanya Sammut-Bonnici

Tanya Sammut-Bonnici

University of Malta; University of Warwick

John McGee

University of Warwick

Date Written: October 3, 2002

Abstract

In this paper we argue that the pace and scale of development in the information and communication technology industries (ICT) has had and continues to have major effects on the industry economics and competitive dynamics generally. We maintain that the size of changes in demand and supply conditions is forcing companies to make significant changes in the way they conceive and implement their strategies. We decompose the ICT industries into four levels, technology standards, supply chains, physical platforms, and consumer networks. The nature of these technologies and their cost characteristics coupled with higher degrees of knowledge specialisation is impelling companies to radical revisions of their attitudes towards cooperation and co-evolution with suppliers and customers. Where interdependencies between customers are particularly strong, we anticipate the possibility of winner-takes-all strategies. In these circumstances industry risks become very high and there will be significant consequences for competitive markets.

Keywords: competition, technology standards, supply chains, consumer networks, technology platforms, network externalities

Suggested Citation

Sammut-Bonnici, Tanya and McGee, John, Network Strategies for the New Economy (October 3, 2002). Sammut-Bonnici, T., & McGee, J. (2002). Network Strategies for the New Economy. European Business Journal, 14(4), 174-185. Available at SSRN: https://ssrn.com/abstract=2335400

Tanya Sammut-Bonnici (Contact Author)

University of Malta ( email )

Msida MSD 2080
Msida MSD 06
Malta

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

John McGee

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

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