Creative Destruction : Business Survival Strategies in the Global Internet Economy

by Lee W. McKnight, Paul M. Vaaler and Raul L. Katz (Eds.)

• ISBN13: 9780262133890
• ISBN10: 026213389X
• Edition: 1st
• Format: Hardcover
• Copyright: 2001-03-19
• Publisher: Mit Pr

Summary

More than fifty years ago, Joseph Schumpeter stated that processes intrinsic to a capitalist society produce a "creative destruction," whereby innovations destroy obsolete technologies, only to be assaulted in turn by newer and more efficient rivals. This book asks whether the current chaotic state of the telecommunications and related Internet industries is evidence of creative destruction, or simply a result of firms, governments, and others wasting valuable resources with limited benefits to society as a whole. In telecommunications, for example, wireless, IP, and cable-based technologies are all fighting for a share of the market currently dominated by older, circuit-switched, copper-terminated networks. This process is accompanied by mergers, acquisitions, bankruptcies, and investment and divestment in worldwide markets. The selections discuss the primary challenge facing firms, governments, and other players: how to exploit the opportunities created by such destructive dynamics. They highlight the importance of national regulations promoting competition and nonmonopolistic market structures, as well as the role of new technologies such as the Internet in driving down the price and speeding the diffusion of innovative products and services in telecommunications, media, electronic retailing, and other "new economy" industries.

Table of Contents

Acknowledgments	ix
PART 1 Introduction
Introduction to Creative Destruction	3	(18)
Lee W. McKnight
Paul M. Vaaler
Raul L. Katz
PART 2 Theory and Practice of Creative Destruction
Innovation and Creative Destruction	21	(18)
William J. Baumol
Internet Business Models: Creative Destruction as Usual	39	(24)
Lee W. McKnight
PART 3 The Global Context for Creative Destruction
Creative Destruction in Latin American Telecommunications Privatization	63	(10)
Walter T. Molano
Creative Destruction in European Internet Industries and Policies	73	(22)
Jill Hills
Maria Michalis
Social Communications Innovation and Destruction in Japan	95	(24)
Leslie Helm
PART 4 Business Destruction Strategies in the Global Internet Economy
Alliance Enterprise Strategies Destroying Firm Boundaries	119	(26)
Peter Pekar, Jr.
Creating and Destroying Shareholder Value Across Borders	145	(22)
Paul M. Vaaler
The Internet Protocol and the Creative Destruction of Revenue	167	(24)
Terrence P. McGarty
PART 5 Creative Business Survival Strategies
A New Theory of the Internet Firm	191	(22)
William Lehr
Sustainable Open Source Software Business Models	213	(16)
Jean Camp
Alternative Industry Futures in the Global Internet Economy	229	(12)
Martin G. Hyman
Raul L. Katz
Contributors	241	(8)
Notes	249	(20)
References	269	(12)
Index	281