Abstract
This article aims to present the results obtained from a study seeking to determine whether technological innovation affected the competitive process of the mobile telephony sector in Brazil between 2012 and 2018. To achieve this aim, the panel data technique was used with dependent and independent variables in the cross-section format. The evaluation of the competitive process was carried out considering the impact of the new technologies adopted by the companies in the segment, the prices, and the quality indicators of the service provided on the market share of each operator in the Sao Paulo region, the largest consumer market in Brazil. The results provide strong evidence that technological innovations in the mobile telephony sector, expressed by the variables of technologies and quality in the provision of services as well as the proxies used for price, affected the competitive process, especially in the strategies for expansion and the loyalty of the customer base.
Highlights
Worldwide, the telecommunications sector has the characteristic of constant technological change
The evaluation of the competitive process was carried out considering the impact of the new technologies adopted by the companies in the segment, the prices, and the quality indicators of the service provided on the market share of each operator in the São Paulo region, the largest consumer market in Brazil
The results provide strong evidence that technological innovations in the mobile telephony sector, expressed by the variables of technologies and quality in the provision of services as well as the proxies used for price, affected the competitive process, especially in the strategies for expansion and the loyalty of the customer base
Summary
The telecommunications sector has the characteristic of constant technological change. Given this fact, some questions arise concerning the most relevant factors that affect the technological advancement of the sector, how users perceive these innovations, and how telephone operators react to maintain or expand their respective market shares. The companies that make up the sector need to adapt to the competitive organization that the consumer market brings as feedback for companies, aiming to increase their capacity for innovation as a way to seek new technologies and become more competitive through stimuli and signs of the market and using research and scientific studies as determining factors for technological innovation
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