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A Web of Alliances in the Global Telecommunication Industry
Unformatted Document Text:  Global Telecommunication 19 that Japanese companies mainly paid particular attention to the Asian region. In contrast, some European companies including UK, French and German firms have expanded their foreign operations and engaged in making ties with other global companies. Nevertheless, there remain some significant patterns in expanding globally. That is, there are differences in selecting foreign countries among telecommunication firms. For example, in case of the global expansion of European companies in the telecommunication industry, “Deutsche Telecom and France Telecom have turned to east, Telecom Italia and Telefonica have become powerhouses in Latin America, and British Telecom has embarked on Asia strategy” (Standard & Poors, 2001, p.27). In relation to the above discussion, there is another important point that should not be ignored. Trends in the interorganizational linkage in the telecommunication industry are closely related to regional integration. Overall, the results showed the consistent patterns of regional configurations in the networks. Interestingly, regional groupings identified in this study are consistent with the regional focus of recent studies on international communication networks (Barnett et al., 1999; Kim & Barnett, 2000). In conclusion, the findings indicate the benefit of describing interorganizational networks in understanding global telecommunication networks. In other words, this study paid much attention to the point that interorganizational alliances can be formed by the coexistence of competition and collaboration among global media firms, in parallel with environmental key events. In fact, because of resource asymmetry, all firms are interdependent with other firms in the market. As Gulati (1995) argues, “strategic interdependence between organizations describes a situation in which one organization has resources or capabilities beneficial to but not possessed

Authors: Chon, Bum Soo. and Barnett, George.
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Global Telecommunication 19
that Japanese companies mainly paid particular attention to the Asian region. In contrast, some
European companies including UK, French and German firms have expanded their foreign
operations and engaged in making ties with other global companies. Nevertheless, there remain
some significant patterns in expanding globally. That is, there are differences in selecting foreign
countries among telecommunication firms. For example, in case of the global expansion of
European companies in the telecommunication industry, “Deutsche Telecom and France Telecom
have turned to east, Telecom Italia and Telefonica have become powerhouses in Latin America,
and British Telecom has embarked on Asia strategy” (Standard & Poors, 2001, p.27).
In relation to the above discussion, there is another important point that should not
be ignored. Trends in the interorganizational linkage in the telecommunication industry are
closely related to regional integration. Overall, the results showed the consistent patterns of
regional configurations in the networks. Interestingly, regional groupings identified in this study
are consistent with the regional focus of recent studies on international communication networks
(Barnett et al., 1999; Kim & Barnett, 2000).
In conclusion, the findings indicate the benefit of describing interorganizational networks
in understanding global telecommunication networks. In other words, this study paid much
attention to the point that interorganizational alliances can be formed by the coexistence of
competition and collaboration among global media firms, in parallel with environmental key
events. In fact, because of resource asymmetry, all firms are interdependent with other firms in
the market. As Gulati (1995) argues, “strategic interdependence between organizations describes
a situation in which one organization has resources or capabilities beneficial to but not possessed


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