Book

Creative Destruction: Business Survival Strategies in the Global Internet Economy

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Abstract

More than fifty years ago, Joseph Schumpeter stated that processes intrinsic to a capitalist society produce a "creative destruction," whereby innovations destroy obsolete technologies, only to be assaulted in turn by newer and more efficient rivals. This book asks whether the current chaotic state of the telecommunications and related Internet industries is evidence of creative destruction, or simply a result of firms, governments, and others wasting valuable resources with limited benefits to society as a whole. In telecommunications, for example, wireless, IP, and cable-based technologies are all fighting for a share of the market currently dominated by older, circuit-switched, copper-terminated networks. This process is accompanied by mergers, acquisitions, bankruptcies, and investment and divestment in worldwide markets. The selections discuss the primary challenge facing firms, governments, and other players: how to exploit the opportunities created by such destructive dynamics. They highlight the importance of national regulations promoting competition and non-monopolistic market structures, as well as the role of new technologies such as the Internet in driving down the price and speeding the diffusion of innovative products and services in telecommunications, media, electronic retailing, and other "new economy" industries.
... Our general research propositions directly imply that TI industry dynamism should have increased during the 1980s and 1990s. As new technologies appear, gain acceptance and mature more quickly and with greater frequency, Schumpeterian creative destruction could become more wide-spread and pronounced across TI industries, a trend explicitly predicted by Garud and Karaswarmy (1995: 93) and contemplated by other scholars examining broader trends in the TI industry sector of the 1980s and 1990s (Bettis and Hitt, 1995;Chakravarthy, 1997;McKnight, Vaaler and Katz, 2001). In line with these views, we expect to find that industry-wide dynamism has increased from 1978-1997 and was greater than in non-TI industry dynamism over the same period, thus: ...
... We then divide the standard error of each regression by the mean value of sales for that industry and use the resulting value as a dynamism score for each industry in each year of four five-year periods examined. 9 In effect, the dynamism score is capturing volatility in the demand for industry products and services, an important outcome of various TI industry trends noted by researchers contending that dynamic competition increased in the 1980s and 1990s (e.g., Bettis & Hitt, 1995;McKnight et al., 2001;Evans & Schmalensee, 2002). ...
Article
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A growing body of research in management and related public policy fields concludes that the 1980s and 1990s saw greater dynamic competition throughout technology-intensive ("TI") industries, with wide-spread, steady increase in TI industry and business performance instability as principal consequences. We test for evidence of these consequences in a large sample of US businesses operating from 1978-1997 in 31 industries with high average R&D expenditure-to-sales ratios. In the full sample, we find no evidence of sustained increase in TI industry and business performance instability, nor any evidence of significant cross-sectional differences in performance instability between TI and non-TI industry businesses over these 20 years. For a small segment of very high-performing businesses from TI industries, however, we do uncover evidence of both significantly declining performance stability as well as evidence of significant cross-sectional differences in performance stability compared to similarly high-performing businesses from non-TI industries over 20 years. We conclude that assumptions of wide-spread, long-term increase in dynamic competition lack robust evidentiary support. It is premature to embrace and apply broadly new theoretical perspectives, management practices and public policies to TI industry competitive dynamics that may be little changed since the late 1970s. Yet, we find evidence of increasing dynamic competition within the strict boundary conditions of very high-performing TI industry businesses. Careful application of new perspectives, practices and policies within these boundary conditions may contribute significantly and substantially to explanations of business behavior and performance in TI industries.
... The detrimental consequences of "strategic drift" have been identified in companies experiencing rapid change (c.f., Pauwels & Matthyssens, 2003) and also in some extreme cases across an entire industrial sector (e.g. the US auto industry, including such wellknown companies as General Motors and Ford of America (c.f., Womack et al., 2007)). Individual organizations with enhanced sensing capacities and capable of adapting themselves to best fit their current andmore importantly -future operating environments are therefore likely to be those that we refer to as high-performing organizations, who will be "superior", gaining competitive advantage over their rivals and in the process survive and prosper (c.f., McKnight et al., 2001;Christensen et al., 1998;Venkatraman & Ramanujam, 1986;Hall, 1980). These fundamental insights have led some organizational analysts to consider the human brain as a useful metaphor for thinking about the nature and performance of organizations. ...
... For example, the construct of "network inertia" has been identified by Kim et al. (2006), referring to a persistent organizational resistance to changing interorganizational network ties or difficulties that an organization faces when it attempts to dissolve old relationships and form new network ties. McKnight et al. (2001) refer to the processes of "creative destruction" that can accompany an organization"s quest for survival in ultra-competitive markets like telecommunications in the Internet age. Thus, many organizations lack the core creative abilities possessed by the brain in order to break down and/or establish new connections, thereby conferring adaptability and "learning"organizational fluidity. ...
Article
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Insights gained from studying the human brain have begun to open up promising new areas of research in the behavioural and social sciences. Neuroscience-based principles have been incorporated into areas such as business management, economics and marketing, leading to the development of artificial neural networks, neuroeconomics, neuromarketing and, most recently, organizational cognitive neuroscience. Similarly, the brain has been used as a powerful metaphor for thinking about and analysing the nature of organizations. However, no existing approach to organizational analysis has taken advantage of contemporary neuroanatomical principles, thereby missing the opportunity to translate core neuroanatomical knowledge into other, non-related areas of research. In this essentially conceptual paper, we propose several ways in which neuroanatomical approaches could be used to enhance organizational theory, practice and research. We suggest that truly interdisciplinary and collaborative research between neuroanatomists and organizational analysts is likely to provide novel approaches to exploring and improving organizational performance.
... The concept of creative destruction was introduced by Schumpeter (1943) to describe how new technologies replace old ones when they are significantly more efficient in some way. Some new innovations, however, attempt to overthrow a prevailing technology, and may succeed in doing do, but are not necessarily superior; the goal is simply to introduce something new for the adopters to adopt and thereby divert revenue from one commodity toward another (McKnight, Vaaler, & Katz, 2001). ...
... The roles of market segmentation and geographic boundaries should be self-explanatory at this stage of the discussion. The telecommunications industries around the world have fostered or inhibited different types of innovation adoption patterns (McKnight et al., 2001). The establishment of a state monopoly can promote relatively rapid diffusion of a particular innovation and technological consistency while inhibiting alternative technological configurations. ...
This article considers models for the diffusion of innovation would be most relevant to the dynamics of early 21st century technologies. The article presents an overview of diffusion models and examines the adoption S-curve, network theories, difference models, influence models, geographical models, a cusp catastrophe model, and self-organizing dynamics that emanate from principles of network configuration and principles of heat diffusion. The diffusion dynamics that are relevant to information technologies and energy-efficient technologies are compared. Finally, principles of nonlinear dynamics for innovation diffusion that could be used to rehabilitate the global economic situation are discussed.
... Entrepreneurship plays a key role in economic growth (e.g., van Stel 2006, Thurik andWennekers 2004), recently recognized by policy makers in the US (Mills 2013) and Europe (European Commission 2013). Previous research has characterized the nature of Internet entrepreneurship as unique (Kollmann 2006;Serarois-Tarrés et al. 2006;McKnight et al. 2002). However, despite the considerable amount of entrepreneurial activity in this context, little is known about the Internet entrepreneurs driving these startups (Mourmant et al. 2009). ...
... Overall, previous research has characterized the nature of Internet entrepreneurship as unique (Kollmann 2006;Serarois-Tarrés et al. 2006;McKnight et al. 2002). Collectively, the literature on, and the practice of Internet entrepreneurship induce doubts that previous models of entrepreneurial success hold in the (social) Internet context. ...
Conference Paper
IT and entrepreneurship are having a ‘love affair’. Rapid developments in ICT, especially the rise of the Internet, have enabled digitized business models and fostered a flourishing environment of innovation and disruption. However, many promising new ventures fail or run out of funding. The business models concept has seen increasing attention from research and practice. Yet, there is little consensus on what a business model actually is and what underlying dimensions or elements it comprises. In addition, there is a lack of quantitative research, especially in the field of e-business. Our research is guided by the following question: What business model elements differentiate successful new ventures from the unsuccessful ones in the Internet economy? We are following an empirical approach using a comprehensive dataset of 70 US-based Internet startups and a large industry network. We apply social network analysis and statistical tests to validate our hypothesis. We find that the degree of structural embeddedness of the startups via their founders in the industry network is a strongly significant determinant of funding success. Our results contribute to the IS discipline, network research, as well as to the field of entrepreneurship research. They further yield implications for theory and practice.
... Compared to IT startups in general, Web startups are new ventures that do not only use IT to support their business processes, moreover they are using the Internet and associated technologies -often coined as 'Web 2.0' [52] -to create and implement new business ideas. Different other terms have been used in the past, including "e-entrepreneurship" [40], "pure dot.com firms" [56], and "Internet businesses" [46]. Despite the considerable amount of entrepreneurial activity in the IT industry, especially in the Web, little is known about actual founders and founding teams in this context [48]. ...
Conference Paper
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There is a considerable amount of entrepreneurial activity in the information technology (IT) industry, especially in the Web. Many claim that the founders are the single most critical factor in startup success. The entrepreneurial self-efficacy theory and the jack-of-all-trades theory suggest that founders with diverse skills and broad experience will be able to successfully create a business alone. Alternatively, social capital theory suggests that founders who have high social capital and who engage in social networking will be able to go alone. Others, however, claim that team building is crucial for startup success as to bringing complementary skills together. In this study, we investigate if having a diverse skill set, higher experience, or more social connections is indeed a determinant of single founders, while co-founders have more specialized (yet complementary) skills. Our results are derived from analysis of 91 Web startups and their 183 (co-) founders. Contradicting existing theory, we could not find determinants for starting a new business alone. However, we find that co-founders do indeed complement each other's skills. Our results suggest that existing entrepreneurial theory needs to be expanded and revised to accommodate for the contradictions found and that future research is required in this area.
... There are perhaps three interrelated dimensions: network economies, agglomeration economies, and the density of users (business and residential). A network is more valuable the greater the number of users (or other nodes) on the network (Katz and Shapiro 1994; Lehr 2001). Some locations are more productive or advantageous than others because they are also the locations of other networks. ...
Article
The Internet is perhaps the defining technology of the emerging twenty-first century. This article examines the infrastructure that comprises the “network of networks” and the spatial patterns that have emerged in the Internet's short existence. In its brief history, the Internet has manifested a tentative relationship with the urban hierarchy. This relationship is tracked over a four-year period (1997 to 2000), during which firms made massive investments in new fiber-optic lines and upgrades. A global bias of Internet backbone networks toward world cities is evident, and it is tempered only slightly by a set of urban areas that serve as interconnection points between backbone networks. Interconnection is both critical to the functioning of the Internet and the source of its greatest complications.
... For example, challenges to traditional cable and tele-type messaging came from fax-and then email-based systems. Chakravarthy (1997) and others (e.g., McGarty, 2001; McKnight, et al., 2001) argue that the increasingly " digital " basis of many related products and services in telecommunications, computing, finance and media has blurred traditional industry distinctions, pooled businesses previously separated by distinctive technological and or regulatory regimes, and increased substantially the number of players who can vie in battles for markets providing voice, graphics and data transfer services. Such TI industry examples constitute, perhaps, more extreme cases of technology-driven market redefinition and re-alignment that might also occur in non-TI industries. ...
... It is generally observed that market development for new technology is demanding with respect to time and capital, and in some cases it is evident that the market is not mature for acceptance of the new product. The innovation need not imply anything as dramatic as 'Creative Destruction', described by Joseph Schumpeter more than half a century ago (McKnight et al. 2001). However, we come close to this concept in the case of Autodisplay AS that wanted to market a product called 'Polydisplay'. ...
Article
Failure rates are estimated from a sample of new technology-based firms established in 1997/98 and evaluated by professionals as being feasible ventures, recommendable for early financing. It is found that, as of 1993/94, nearly 70% of the firms had failed and that several of the sustaining firms were in poor shape. It is concluded that the rate of survival is not significantly lower for these firms than for the new tech enterprises that have not been screened at early stages. Reasons for failure are discuss by reference to a number of case analyses. Typically it is found that a combination of factors interact to cause failure, that the chances for firm survival, at an early stage of development, could be characterized as a stochastic process, and that technology-based strategic planning is essential for success.
... The openness of Internet-type networks allows businesses, their suppliers, and consumers to communicate and interact freely. Its distributed and flexible architecture allows resources to be combined and used in novel ways, encouraging innovation and enhancing capabilities McKnight et al. (2001), Clark (1988). However, this also increases the problem of protecting systems from myriad challenges ranging from viruses, denial of service attacks, intellectual property infringement (including protecting copyright in a Napster age), and the abuse of privacy. ...
Article
Full-text available
The evolution of computing has lead to networks which are characterized by decentralization and decreasing institutional control over resources. Wireless Grids, mobile ad-hoc resource sharing networks, are challenging environments in which users strategic behaviors are crucial to system performance. We review the mechanisms employed to regulate strategic behavior online—technical, social, legal and economic—and discuss trends in their operation and application in distributed and Grid computing.
... and doers. No less than five books have appeared in recent years with "creative destruction" in the title(Cowan, 2002;Page, 2000;Foster & Kaplan, 2001;Nolan & Croson, 1995;McKnight, Vaaler & Katz, 2001). Three of these books are aimed squarely at effecting business practice, while the other two apply "creative destruction" to issues outside the usual concerns of economists. ...
Article
Abstract Dynamic competition through the process ofcreative destruction encourages the innovation in product and process that lengthens and improves,lives. This is Schumpeter’s central message. Increasing evidence supports the message. And increasing numbers of academic social scientists, and business and policy analysts, take the message,seriously. Howe ver economists have lagged inpresenting the message,as part of the core of usefuleconomic,knowledge,taught toundergraduates. And,the message,has not filtered into policy decisions in antitrust cases.
... Probably the term equilibrium connotes 'static' and Schumpeter believed stationary equilibrium to be theoretically possible, although he considered it unfeasible because a real economy is dynamic and especially relentless due to innovation and entrepreneurship (Schumpeter, 1954). The question, then, is not how to administer existing structures but how to generate and administer innovations (Screpanti & Zamagni, 1993;McKnight, Vaaler, & Katz, 2002;Carayannis et al., 2007;Kirchhoff, Linton, & Walsh, 2013). Therefore, Schumpeterian equilibrium is, paradoxically, the perpetual disruption of equilibrium.This proceeds for the sake of both creativity, as part of autonomous and intrinsic human nature, and profit (Kozbelt, Beghetto, & Runco, 2010). ...
... Any cosmetic change does not work and even if it costs some less it does not bring expected outcomes. Transition to the information economy requires specific way of introducing change -creative destruction (Kanter: 2001, McKnight, Vaaler, Katz 2001. Such changes are unaccepted by many of traditional managers. ...
Article
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The paper presents necessity of strategic planning of investment in information technol-ogy (IT) in conditions of changing environment. The goal of the paper is to discuss new settings of electronic business and inevitability of quick decision and action. Some con-ditions of e-market were presented as well as approaches used by different types of organizations.
... The phrase "creative destruction" has stimulated a wide audience of thinkers and doers. No fewer than 14 books have appeared since the mid-1990s with "creative destruction" in the title (Carayannis and Ziemnowicz, 2007;Cowan, 2002;Eliasson, 2005;Fisher, 1999;Foster and Kaplan, 2001;Hardaker, 2004;Koja, 2006;Lerner, 2006;McKnight, Vaaler & Katz, 2001;Metcalfe, 1998;Mezias and Boyle, 2002;Nolan and Croson, 1995;Owens, 2002;Page, 2000). The books are diverse: three are aimed squarely at effecting business practice, while one (Lerner) is a work of science fiction written by a University of Chicago MBA. ...
... The first four alternatives are already in use, though in various ways and degrees (Schumpeter, 1942; McKnight and al., 2001). The last is more problematic, in that aspirations arise when goods are scarce or low in quality. ...
Data
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In this paper I propose two models to understand (not merely describe) the operating logic of the firm - that is the business for profit organization - both at the micro level, considering the firm as a unit, and at the macro level, considering collectivities of firms of the same kind: 1) when viewed as individual units firms can, at the micro level, be interpreted as operating systems for efficient transformation that carry out five parallel transformations, a. a productive transformation of factors into production; this is a transformation of utility, governed by productivity and by quality; b. an economic transformation of costs and revenues into operating income; this is a transformation of value, governed by prices and therefore by the market; c. a financial transformation of risks, which transforms capital into returns and guarantees the maintenance of its financial integrity; d. an entrepreneurial transformation of information into strategies, which leads to a continual readjustment of the firm's strategic position; e. a managerial (organizational) transformation of strategies into actions of management control. 2) when viewed as elements of the economic system firms can, at the macro level, form a combinatory system of improvement and progress in which each firm acts to maximize its efficiency measures, and this inevitably leads to progress in productivity, quality, costs and technology for the system as a whole.
... Information technology (IT) and entrepreneurship are having a love affair, because 'IT is the magic ingredient that inspires and most often enables contemporary entrepreneurial endeavours' (Del Giudice & Straub, 2011, p. III). This link between IT and entrepreneurship is especially salient in the context of Internet startups (McKnight et al., 2002;Kollmann, 2006;Serarois-Tarrés et al., 2006), which leverage Internet technologies and the economics of digital products (e.g., network effects) to gain a competitive advantage through early market entry (Grover & Saeed, 2004). Some Internet startups have quickly become major successes that influence the lives of millions: Google, Skype, Facebook -and more recently Dropbox, WhatsApp, Instagram, and many others. ...
... The openness of Internet-type networks allows businesses, their suppliers, and consumers to communicate and interact freely. Its distributed and flexible architecture allows resources to be combined and used in novel ways, encouraging innovation and enhancing capabilities McKnight et al. (2001), Clark (1988). However, this also increases the problem of protecting systems from myriad challenges ranging from viruses, denial of service attacks, intellectual property infringement (including protecting copyright in a Napster age), and the abuse of privacy. ...
Chapter
Full-text available
The evolution of computing has led to networks which are characterized by decentralization and decreasing institutional control over resources. Wireless Grids, mobile ad-hoc resource sharing networks, are challenging environments in which users strategic behaviors are crucial to system performance. We review the mechanisms employed to regulate strategic behavior online—technical, social, legal and economic—and discuss trends in their operation and application in distributed and Grid computing.
... The markets for devices that are suitable for mobile teaching and learning have obviously undergone rapid and tremendous changes since they first appeared in the 1990s. Primarily driven by technological change, these changes are often reminiscent of Schumpeterian "creative-destructive" processes in which new products emerge to make obsolete and replace existing products in the market (McKnight et al. 2002). Such processes are particularly intense in markets driven by information technology. ...
Chapter
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E-commerce business models are important to ensure the financial feasibility of mobile teaching and learning services. Key elements of business models value propositions, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development, and management team. Other considerations include competition between mobile device platforms, network effects, and mobile broadband pricing.
... Probably the term equilibrium connotes 'static' and Schumpeter believed stationary equilibrium to be theoretically possible, although he considered it unfeasible because a real economy is dynamic and especially relentless due to innovation and entrepreneurship (Schumpeter, 1954). The question, then, is not how to administer existing structures but how to generate and administer innovations (Screpanti & Zamagni, 1993;McKnight, Vaaler, & Katz, 2002;Carayannis et al., 2007;Kirchhoff, Linton, & Walsh, 2013). Therefore, Schumpeterian equilibrium is, paradoxically, the perpetual disruption of equilibrium.This proceeds for the sake of both creativity, as part of autonomous and intrinsic human nature, and profit (Kozbelt, Beghetto, & Runco, 2010). ...
Book
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The book Strategic Approaches to Human Resources Management Practice is focused on the issue of diversity management. This concept fits well with the concept of HR strategy due to its ability to create longterm value for the organization. Nowadays, the diversity management is increasingly recognized by larger organizations, especially multinational corporations, however, most of the managers are of an opinion that diversity management is beneficial only as an element of strategic human resources management. Diversity management can be viewed as a strategy for using best practices with proven results to find and create diverse and inclusive workplace. Successful strategies link diversity progress directly to the business results. Best practices may include the use of employee teams, diversity councils, mentoring and sponsorship, and supplier diversity. The hereby monograph has been inspired as a response to the looming changes and the thirst for discussion on the challenges of the contemporary HR. The authors of the monograph are of different nationalities and have different research and practical experience in the field of HR, which allowed for commencing the discussion from multifarious prisms and perspectives.
... Due to his ambition to understand the process of economic evolution as an " indivisible whole " , Schumpeter could not help neglecting the complex normative dimension of this process. This complexity is well reflected in the " stimulating ambiguity " (Baumol, 2002) of the metaphor of " creative destruction " . Torn between, on the one hand, the intricacy of the issues involved and, on the other hand, the poor state of the (perfectly static and deeply positivist) welfare economics of his time, his thinking on the welfare implications of evolutionary change is sometimes hard to reconstruct. ...
Article
The research agendas of psychologists and economists now have several overlaps, with behavioural economics providing theoretical and experimental study of the relationship between behaviour and choice, and hedonic psychology discussing appropriate measures of outcomes of choice in terms of overall utility or life satisfaction. Here we model the relationship between values (understood as principles guiding behaviour), choices and their final outcomes in terms of life satisfaction, and use data from the BHPS to assess whether our ideas on what is important in life (individual values) are broadly connected to what we experience as important in our lives (life satisfaction).
... Although such evolution marks the system dynamics, it is not exclusively concerned with the structure of relations, however, but also with the actors' changing attributes. Most social actors face constraints and opportunities imposed on them by the social setting (Wellman, 1988) and this is especially true for actors such as start-up companies, which must have the capability to value, assimilate, and apply new information into its practices in order to survive in the business sector (McKnight et al., 2002). The adoption of new ideas and products provides competitive advantage to companies, and therefore it is essential to understand the context for the decision to adopt a novelty. ...
Article
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This paper elaborates on two theories of social influence processes to multiplex network structures. First, cohesion influence is based on mutual communication made by different types of relations, and second comparison influence that is built on contrasting types of tie. While a system of bundles with a mutual character constitutes the setting for a multiplex network exposure measure within cohesion, comparison influence is defined algebraically through classes of actors in terms of a weakly balanced semiring structure that considers positive, negative, and also ambivalent types of tie. A case study with these approaches is made on an entrepreneurial community network with formal business relations, informal friendship ties, and perceived competition among the firms, and the methods are validated with the Sampson Monastery data set.
... Essential is the fact that this value offer was only made possible through the development of information technology." As the significance of Internet-based technologies has triggered a technological and societal development that is irresistible, "e-entrepreneurship can be expected to gain further importance in the future" (Kollmann, 2009, p. 13 This is particularly evident in the context of Internet start-ups (Kollmann, 2006;McKnight, Vaaler and Katz, 2002; Serarois-Tarrés, Padilla-Meléndez and del Aguila--Obra, 2006), taking advantage of the Internet and mobile technologies in the process of offer creation and communication (Badzińska, 2016;Brzozowska-Woś, 2012. The focus on the needs of future customers, providing unique value, and early market entry often allow companies to achieve competitive advantage (Grover and Saeed, 2004). ...
Article
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Purpose: The scientifc purpose of the study is an attempted synthesis of interpretation of “the virtual economy” and “the virtual environment” in the Polish and foreign literature on the subject. The cognitive purpose thereof is to offer an identifcation and a qualitative analysis of the factors that determine the development of e-entrepreneurship using an example of business practice. Methodology: The theoretical basis of the study is a scientifc research of leading scholars on the theory of entrepreneurship in the context of virtual economy. An exploratory, qualitative case study methodology has been applied for the purpose thereof. The research has been conducted using the example of Currency One SA, operating on the currency exchange market in virtual economy. The application of the empirical method of a case study has made it possible to characterize the essence of e-entrepreneurship and present the studied phenomenon in business practice. Findings: Research results reveal an existence of interdependencies between the intellectual potential of staff members and the market success of a company. Explanation of the critical success factors, showing the implementation of innovative ICT solutions and stages of company development, illustrates how the existing theory is experienced by practitioners in virtual economy. Furthermore, the paper confrms the positive impact of e-entrepreneurship on the effectiveness of the company subject to analysis, and presents virtual economy as a completely new sphere through which it is possible to offer new products and services. Research implications: The rationale for conducting research on case studies is the need to orient the practice towards a better understanding of modern economic reality. The study may provide a starting point for empirical quantitative research, as well as act as a contribution to the discussion on entrepreneurship in the rapidly changing virtual economy. Originality: This paper comprises not only a set of notions related to and the concept of e-business models, but also offers new arguments in the discussion on the framework for entrepreneurship in virtual economy. The conducted research is an original attempt to explain the essence of the studied phenomenon and to illustrate its progress in a changing business environment.
... One of them is creative destruction, a term introduced by Joseph Schumpeter (2009), according to which companies decide to use innovations to replace obsolete products with improved and more modern successors. These activities, in turn, affect the possibilities of economic development (McKnight, Vaaler, and Katz, 2001, p. 6), which shows purposeful aging in a positive light. ...
Article
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Planned obsolescence is one of a company’s strategies in relation to its product. It happens in three ways: (1) the company shortens the life span of the product; (2) the repair of the product is made too expensive, and therefore the consumer decides to buy a new one; and (3) the company introduces better models. Planned obsolescence is often assessed as unethical behavior, contrary to the idea of sustainable development. In this article, I present the problem of planned obsolescence and then explain that this phenomenon brings not only losses to the consumer, but also benefits.
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Why do firms go abroad when technology makes it possible to do business at a distance? We argue that the cost of distance differentially affects investment motivations across industries. We find support for this hypothesis in a study of U.S. inward and outward FDI. Knowledge seeking and efficiency seeking are the two most important explanations for international activity in information-intensive industries, reinforcing the value of intangible resources in this sphere. In less information-intensive industries, market seeking and the search for low-cost export platforms are the dominant motivations for FDI. An important implication for the current debate on offshoring is that inward FDI flows into the United States occur in high- rather than low-paying industries, and are of the knowledge-seeking variety, while outward flows are driven by the search for efficiency and markets. Copyright © 2005 John Wiley & Sons, Ltd.
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Internet phone services have grown from technical novelty to a competitive threat for traditional circuit-switched telecommunications. Using available telecommunication deployment statistics in the United States and modeling software, this paper presents two scenarios that investigate the potential impact of Internet telephony on universal service programs. They test whether the introduction of this technology and the way it could potentially be regulated would sufficiently reduce contributing carriers' revenues to threaten the viability of the Universal Service Program. We conclude that the regulatory policies developed in the past century to support universal service have been obsolesced by the innovation and creative destruction of Internet telephony.
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Conference Paper
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The contributors to this volume examine issues raised by the intersection of new communications technologies and public policy in this post-boom, post-bust era. Originally presented at the 30th Research Conference on Communication, Information, and Internet Policy (TPRC 2002)—traditionally a showcase for the best academic research on this topic—their work combines hard data and deep analysis to explore the dynamic interplay between technological development and society. The chapters in the first section consider the ways society conceptualizes new information technologies and their implications for law and policy, examining the common metaphor of "cyberspace as place," alternative definitions of the Internet, the concept of a namespace, and measures of diffusion. The chapters in the second section discuss how technological change may force the rethinking of legal rights; topics considered include spectrum rights, intellectual property, copyright and "paracopyright," and the abridgement of constitutional rights by commercial rights in ISP rules. Chapters in the third and final section examine the constant adjustment and reinterpretation of regulations in response to technological change, considering, among other subjects, liability regimes for common carriers and the 1996 detariffing rule, privacy and enhanced 911, and the residual effect of state ownership on privatized telecommunication carriers. The policy implications of Rethinking Rights and Regulations are clear: major institutional changes may be the necessary response to major advances in telecommunications technology.
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Inkinen, Sam & Kaivo-oja, Jari (2009) Open Innovation Meets Innovation Media: Concepts, Aspects and Future Trends of Creative Processes and Innovation Ecosystems. The 6th Conference on Innovation Journalism. IJ-6 Academic Track Papers. University of Stanford, Stanford, Palo Alto. Web: http://www.innovationjournalism.org/ij6ac/papers/
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The evolution of computing is characterized by decentralization and decreasing institutional control over resources. Wireless Grids, that is, fixed and mobile ad-hoc resource sharing networks, are challenging environments in which users strategic behaviors are crucial to system performance. We review the mechanisms employed to regulate strategic behavior online-technical, social, legal and economic-and discuss trends in their operation and application in distributed wireless grid computing.
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To what extent has digital convergence pushed the U.S. to a new phase of the Information Age, one favouring scale and scope over entrepreneurial newcomers? As we consider this question, what stands out is the similarity between the communications revolution of the late 19th century and today’s digital revolution. In both eras, challenges by entrepreneurs from peripheral U.S. regions led to an accelerated deployment of new technologies.
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The research objective was to determine differences in the perception of consumers based on the type of work on quality, price and product packaging drinking water refill. The population is all refill drinking water consumers in the city of Pekanbaru, Riau. Where the sample in the study is that there are as many as 300 customers. The sampling technique used was non probability sampling method with Convenience sampling, considering where the population is large enough, then any consumer who is easy to find, and it was able to be sampled, then it has the right to be a respondent. This is done to diagnose the situation quickly and is simple and easy, because of the limited time in the fieldwork. Environmental distinguished work on 1. Groups of civil servants and private sector employees. 2. Groups of self-employed, housewives and others. The results showed that there were significant differences between the consumer perception based on the type of work on the variable quality, price and product packaging drinking water refill.
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The world is evolving from one in which almost all access to the Internet comes through personal computers, to one in which so-called Internet appliances are expected to make up a growing share of end user equipment. Focusing on consumer-oriented appliances, we consider whether this shift has implications for the pace of Internet innovation. We conclude that given the starting point of the current Internet, certain of the proposed business models for Internet appliances are not likely to be viable, and this very fact protects the Internet's characteristically rapid pace of innovation
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