Coevolution of Alliance Portfolio and Organization
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COEVOLUTION OF ALLIANCE PORTFOLIO AND ORGANIZATION OF NEW TECHNOLOGY-BASED FIRMS: A CASE STUDY OF THE MOBILE INTERNET INDUSTRY Dissertation zur Erlangung des akademischen Grades doctor rerum politicarum Vorgelegt an der Wirtschafts- und Sozialwissenschaftlichen Fakultät der Otto Friedrich Universität Bamberg Tillmann L. von Schroeter Gutachter: 1. Prof. Dr. Dodo zu Knyphausen-Aufseß 2. Prof. Dr. Peter Witt Prüfungstermin: 25.11.2004 to my parents __________________________________________________________________________________ ACKNOWLEDGEMENTS I want to thank a number of individuals and organizations for their advice and support throughout this research project. First, I would like to thank my academic advisor Dodo zu Knyphausen-Aufseß who, throughout our joint two years, supported this work in two ways. As regards content, his counsel set the basic direction of my work and strongly influenced the selection of a suitable research methodology; he shaped the overall ‘storyline’ of this research study with his challenging questions. His interest and openness allowed me to develop my own approaches and find “my way”. As regards the academic environment, Dodo zu Knyphausen-Aufseß’s enthusiasm and dedication was a cornerstone in initiating Exist-HighTEPP, an entrepreneurial research program in Bamberg, Germany. Exist-HighTEPP provided an excellent research environment here in Germany and funds for a visiting scholarship at the Wharton School. In the US, I would like to thank Claus Rerup of the Wharton School for teaching me the necessary academic humility and ambition, and Simone Ferriani from the University of Bologna for the discussions concerning network and resource dependency theory and his thoughts on co-evolution of alliances and organizations. My understanding of strategic management and entrepreneurship has also greatly benefited from the insights I gained through many discussions at Wharton with Sidney Winter, Ian MacMillan, and Lori Rosenkopf. To all five, I would like to express my gratitude for taking the time to discuss my project with me. A special thanks to Ian MacMillan, who invited me to come to Wharton for four months. The exposure to the best research community in the world was inspiring and very helpful. Concerning my understanding of the Mobile Internet Industry, I would like to thank Claudius Bertheau for four years of engaging discussions on market trends, technologies, and cooperations. These talks were essential for my understanding of business models, value chains, and alliances in this industry. In addition, his company Airweb served as a prototype case that was instrumental in crafting the research tools. This study would not have been possible without the collaboration of nine mobile Internet companies: 12snap, Airweb, ApollisInteractive, Clever.Tanken, e-hotel, Gate5, Mindmatics, Multichart, and Yellowmap. I am grateful to the many executives for the time they gave to be interviewed, for the knowledge they shared with me, and for the trust they put in my work. I sincerely hope that the results of this study allow them to view their efforts as ‘good investments’. In observance of an old tradition, I acknowledge my full responsibility for the study, its conclusions, and its weaknesses. I would like to thank my friends and colleagues in the Exist HighTEPP program, Nils Naujok, with whom I shared a room and had multiple discussions about the fundamental questions of alliances in the communication industry, and Sabine von Witzleben – managing assistant of the program – for streamlining my writing and for her élan, with which she introduced us to Frankonian culture. Last but not least I would like to thank Karsten Hoppe, who recruited me for the program and, as compensation for the many hours in front of our PCs, gave me good battles on the badminton court. I would lastly like to thank my family and friends. A special thanks to my parents for their constant support over the past years and their lobbying for an academic career and to Saskia for the many inspiring hours and for her vitality, which gave me the power to focus on achieving this research project. Berlin TILLMANN L. VON SCHROETER October 2004 __________________________________________________________________________________ TABLE OF CONTENTS page 1. INTRODUCTION ............................................................................................................................1 2. RESEARCH METHODOLOGY..................................................................................................10 2.1 RESEARCH QUESTION AND METHODOLOGY..................................................................................10 2.1.1 Research strategy..............................................................................................................10 2.1.2 Spectrum of case study approaches ..................................................................................11 2.1.3 Critique on case study research........................................................................................13 2.2 RESEARCH PROCESS .....................................................................................................................16 2.2.1 Preparation.......................................................................................................................16 2.2.2 Selection of cases ..............................................................................................................17 2.2.3 Crafting instruments .........................................................................................................17 2.2.4 Data collection..................................................................................................................19 2.2.5 Analyzing data ..................................................................................................................22 2.2.6 Shaping hypothesis............................................................................................................26 2.2.7 Enfolding literature...........................................................................................................27 2.2.8 Reaching closure and validity of data...............................................................................28 3. CASE STUDIES ON ALLIANCE PORTFOLIOS AND ORGANIZATIONAL CHANGE...29 3.1 BUILDING INDUSTRY CONTEXT: MOBILE INTERNET INDUSTRY ....................................................30 3.1.1 Industry overview..............................................................................................................30 3.1.2 The need to partner...........................................................................................................40 3.1.3 Segment and case selection...............................................................................................43 3.2 MOBILE LOCATION SERVICES ......................................................................................................47 3.2.1 Segment overview..............................................................................................................47 3.2.2 Case history ......................................................................................................................54 3.2.3 Within segment analysis....................................................................................................61 3.2.4 Segment conclusion...........................................................................................................86 3.3 MOBILE CONTENT SERVICES .......................................................................................................87 3.3.1 Segment overview..............................................................................................................87 3.3.2 Case history ......................................................................................................................93 3.3.3 Within segment analysis..................................................................................................105 3.3.4 Segment conclusion.........................................................................................................123 3.4 MOBILE MARKETING SERVICES ..................................................................................................124 3.4.1 Segment overview............................................................................................................124 3.4.2 Case history ....................................................................................................................130 3.4.3 Within segment analysis..................................................................................................142 3.4.4 Segment conclusion.........................................................................................................160 3.5 CROSS-SEGMENT ANALYSIS - BUILDING A SET OF TENTATIVE HYPOTHESES ...............................160 3.5.1 Cross segment analysis ...................................................................................................161 3.5.2 Tentative hypotheses .......................................................................................................173 4. THEORETICAL PERSPECTIVES ON ALLIANCE PORTFOLIOS AND ORGANIZATIONAL COEVOLUTION....................................................................................................................................180 4.1 ALLIANCE NETWORKS................................................................................................................181