VoIP Diffusion Among New Entrants: A Path Dependent Process
Published in Industry and Innovation. Vol. 16, No. 2, pp. 219-245, 2009
44 Pages Posted: 14 Sep 2009
Date Written: April 1, 2009
The path dependency literature provides insights on the dynamic allocations processes in which events are non-ergodic and have multiple absorbing states. Technological change belongs to this class of processes. We contribute to this conceptual framework by analysing the distinction between path and past dependence. The aim is to investigate how firms implement new innovations in localised technological changes. We develop this conceptual framework to present a longitudinal case study describing the history of VoIP (Voice over Internet Protocol) diffusion using data triangulation. From the empirical findings, it emerges that new entrants have applied the technology with creativity, following a path dependent process, offering free voice communication, while incumbents have applied the technology within a past dependent pattern and thus the benefits to their customers have been reduced and delayed.
Keywords: VoIP diffusion, path and past dependency, localised technological change
JEL Classification: L86, L96, L21
Suggested Citation: Suggested Citation