Entry barrier's difference between ICT and non-ICT industries

Purpose - Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better understanding of entry barriers in the ICT market. The purpose of this paper is to examine the overall characteristics...

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Bibliographic Details
Published inIndustrial management + data systems Vol. 113; no. 3; pp. 461 - 480
Main Authors Yang, Changgyu, Lee, Sang-Gun, Lee, Jaebeom
Format Journal Article
LanguageEnglish
Published Wembley Emerald Group Publishing Limited 01.01.2013
Subjects
Amplification
Barriers
Bass
Competition
Costs
Customer services
Dominance
Information technology
Innovations
Literature reviews
Manufacturing
Market entry
Market positioning
Market shares
Markets
Production costs
Strategy
Studies
Tracking
Innovation
ICT market
Entry barrier
Bass diffusion model
Information technology
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Summary:Purpose - Given the increasingly saturated information and communication technology (ICT) market and the intensification of competition among ICT firms, there is a need for a better understanding of entry barriers in the ICT market. The purpose of this paper is to examine the overall characteristics of these entry barriers and identify firms' strategies for achieving market dominance.Design methodology approach - The authors examined the overall characteristics of these entry barriers and identified firms' strategies for achieving market dominance by tracking the actual patterns of firms' ICT market entry based on the Bass diffusion model.Findings - The results indicate that the saturation of the ICT market reduced entry barriers, which strengthened the imitation effect. In addition, entry barriers were lower for ICT firms than for non-ICT ones. Furthermore, entry barriers were higher for the manufacturing sector than for the service sector, indicating that the innovation effect was stronger for the manufacturing sector than for the service sector, whereas the opposite was true for the imitation effect.Originality value - These results suggest that those firms that are planning to enter or are already in the ICT market should develop better strategies for gaining a competitive advantage.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
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ISSN:0263-5577
1758-5783
DOI:10.1108/02635571311312712