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Industry Evolution And Shakeout Mechanisms In The Internet Service Provider Industry
May 24, 2002The dissertation of Susanne Suhonen (Mc.S in Econ) will be publicly examined at the Helsinki School of Economics on Friday, May 24, 2002. The opponent is Professor Thomas Keil from the Schulich School of Business, York University, Canada. The instructor is Professor Arto Lahti, from the Helsinki School of Economics.
The dissertation "Industry evolution and shakeout mechanisms: The case of the Internet service provider industry" is positioned in the theoretical framework of evolutionary theory. The study aims at contributing to the understanding of industry evolution and shakeout mechanisms in new, Internet-based service industries.
The study reviews the existing research on industry evolution and shakeout mechanisms, advanced in particular by evolutionary economists and population ecologists. The empirical part of the dissertation is based on a case study of the Internet service provider industry in four countries: the United States, the United Kingdom, Germany and Finland.
The findings of this dissertation suggest that new, Internet-based service industries differ in their patterns of industry evolution and shakeouts from the old, established industries. The present study extends the theory by arguing that business model innovations can be a more useful conception in the Internet-based service industries than the concept of product or process innovation. Further, Internet-based service industries seem to present opportunities for pre-shakeout specialisation, as opposed to the post-shakeout specialisation found in the previous studies. Also, the industry shakeout took place earlier in the case industry than in most other examined industries.
The dissertation proposes a new shakeout mechanism, the decline in availability of funding for the industry. This shakeout mechanism has not been identified in the previous research. Finally, the findings of this dissertation suggest that industry shakeout should be seen as a process with several triggers, and not as a result of a single shakeout mechanism.
Helsinki School Of Economics (HSE) - Helsingin kauppakorkeakoulu
The findings of this dissertation suggest that new, Internet-based service industries differ in their patterns of industry evolution and shakeouts from the old, established industries. The present study extends the theory by arguing that business model innovations can be a more useful conception in the Internet-based service industries than the concept of product or process innovation. Further, Internet-based service industries seem to present opportunities for pre-shakeout specialisation, as opposed to the post-shakeout specialisation found in the previous studies. Also, the industry shakeout took place earlier in the case industry than in most other examined industries.
The dissertation proposes a new shakeout mechanism, the decline in availability of funding for the industry. This shakeout mechanism has not been identified in the previous research. Finally, the findings of this dissertation suggest that industry shakeout should be seen as a process with several triggers, and not as a result of a single shakeout mechanism.
Helsinki School Of Economics (HSE) - Helsingin kauppakorkeakoulu
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