Threading the needle of the digital divide in Africa: The barriers and mitigations of infrastructure sharing

Emmanuel Ogiemwonyi Arakpogun,Ziad Elsahn,Richard B Nyuur,Femi Olan

doi:10.1016/j.techfore.2020.120263

Emmanuel Ogiemwonyi Arakpogun, Ziad Elsahn + Show 2 more

Open Access

https://doi.org/10.1016/j.techfore.2020.120263

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Abstract

Coopetition is prevalent in today's dynamic business environment and has attracted research interests. Using coopetitive-based view, this study examines the antecedents and drivers of infrastructure sharing (IS) among local and multinational mobile network operators (MNOs) in Africa. Based on 21 interviews with different stakeholders in seven sub-Sahara African (SSA) countries, we develop an integrative framework of industry/market, technological, and institutional factors that affect IS between MNOs. We find evidence of institutional factors shaping the impact of the industry structure and technological factors on firms’ propensity to engage in coopetitive strategies. There is evidence that in contexts with low-level IS, inadequate regulatory interventions mean that the existing market conditions are reproduced, leading to further competitive behaviours from MNOs. For high- level IS, MNOs tend to engage in further coopetitive strategies through strategic learning and cooperate to resolve technological incompatibilities and engage in standards settings. We extend the existing scholarly works on coopetition and IS literature by providing an in-depth understanding of the obstacles faced by MNOs in adopting IS. The study further highlights that IS requires a shift from the competitive-based logic to a dynamic, coopetitive one, which is nonetheless challenging to achieve with limited institutional capacity and support.

Highlights

A prevalent characteristic of today's dynamic global business environment is the coopetition among firms, which refers to the simultaneous cooperation and competition between rival firms in certain domains (Amankwah-Amoah, 2020; Bengston & Raza-Ullah, 2016; Brandenburger & Nalebuff, 1995; Luo, 2007)
Through in-depth within and cross-case study analyses, we identified several factors that affect mobile network operators (MNOs)’ coopetitive orientation, that is, the extent to which MNOs are behaviourally disposed towards coopetition (Bouncken & Fredrich, 2016), and their disposition to engage in infrastructure sharing (IS)
These factors are related to industry/market characteristics and technological and institutional forces, which together affect MNOs competitive strategies, practices and their inclination to engage in IS

Summary

Introduction

A prevalent characteristic of today's dynamic global business environment is the coopetition among firms, which refers to the simultaneous cooperation and competition between rival firms in certain domains (Amankwah-Amoah, 2020; Bengston & Raza-Ullah, 2016; Brandenburger & Nalebuff, 1995; Luo, 2007). Recent reviews further highlight the focus on manufacturing firms of most coopetition studies in the context of research and development (R&D) collaboration and the limited attention paid to coopetition among service firms (Dorn et al, 2016). The insufficient research on external institutions’ role in rivals’ coopetitive dynamics represents a severe shortcoming in understanding the nature of coopetition (Dorn et al, 2016; Lascaux, 2020). This is the case for industries with substantial regulatory involvement, such as the telecommunications industry. Scholars have emphasised the necessity for further research on the drivers, barriers, and outcomes of coopetition to determine the nature and characteristics of the coopetitive processes and improve our overall understanding of coopetition (Gnyawali et al, 2016; Lascaux, 2020)

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