The effect of technology innovation on mobile communication and mobile products
| Date | 11 September 2017 |
| Pages | 1707-1719 |
| Published date | 11 September 2017 |
| DOI | https://doi.org/10.1108/IMDS-10-2016-0425 |
| Author | Eui-Bang Lee |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
The effect of technology innovation
on mobile communication and
mobile products
Eui-Bang Lee
Department of Business Administration,
Division of Management Information Systems, Sogang Business School,
Sogang University, The Republic of Korea and
Big Data Service Department –Data Streams, Seoul, The Republic of Korea
Abstract
Purpose –In order to understand the influence of technology innovation on market demand diffusion in the
ICT service market, the purpose of this paper is to examine technology innovation in the mobile product
market, which keeps a complementary relationship with the mobile communication market.
Design/methodology/approach –This study collected mobile communication user information of four
leading countries in the ICT market –the USA, the UK, Korea, and Japan from 1981 to 2014. This study
applies the Bass diffusion model to analyze the form of market demand diffusion and conducts white noise
test to verify the hypotheses.
Findings –Technology innovation of mobile communication leads to an increase in innovation effect
and a decrease in imitation effect. Thus, technology innovation of mobile communication needs to be
promoted continuously for the purpose of increasing adopters in the early stage. Besides, mobile product’s
technology innovation leads to an increase in imitation effect and a decrease in innovation effect,
because individuals were aware of the usefulness of the products and services. Hence, the increase in the
number of imitators caused a higher increase in imitation effect than in the mobile communication’s
innovation effect.
Originality/value –Based on the results of this study, the role that product and service technology
innovation plays in renewing the form of market demand diffusion in the ICT service market was defined.
Also, since the strategies and plans to acquire competitive advantage of business were understood, it may
help both companies and policy decision makers.
Keywords Bass diffusion model, Mobile communication, Technology innovation, Complement goods,
Mobile product
Paper type Research paper
1. Introduction
Mobile communication (or telecommunication) market is a typical ICT service market, which
has reached market saturation due to its rapid spread. The significance of this market
increases along with its rapid spread, and various research suggested business strategies
regarding its market situation (Corrocher and Zirulia, 2010; Dahan, 2011; Lee, Yu, Yang and
Kim, 2011; Wu and Chu, 2010). The number of users in the mobile communication market
has exceeded the total population in 105 countries of the world (Lee et al., 2015). Businesses
attract customers to use their products through technology innovation in order to secure
their competitive advantage in a saturated market, (Lee et al., 2014, 2015). Mobile
communication market continues technology innovation, which has upgraded from 1st
Generation to 4th Generation, in order to improve service quality and increase applicability.
Since technology innovation increases innovation effect and decreases imitation effect,
enterprises shorten the innovation cycle of technology in order to acquire members at the
early stage of technology innovation (Lee et al., 2014).
Providing services requires the use of products in mobile communication market.
Services require products that have a complementary relationship with them, meaning that
this market has a direct influence on another market. The mobile product market, which is
Industrial Management & Data
Systems
Vol. 117 No. 8, 2017
pp. 1707-1719
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-10-2016-0425
Received 7 October 2016
Revised 6 January 2017
Accepted 21 January 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
1707
The effect of
technology
innovation
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