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A Web of Alliances in the Global Telecommunication Industry
Unformatted Document Text:  Global Telecommunication 21 relationships for the telecommunication industry, excluding weak ties. Consequently, this study did not consider the strength of alliances among telecommunication firms at the various levels. Although Contractor and Lorange (1988) developed an ordinal scale for measuring the strength of alliances, scholars argue that it did not differentiate weak ties from strong ties (Rowley et al., 2000). Thus, it needs to develop the measurement scales to examine different interorganizational alliances. These limitations suggest several directions for future research. Future research will have to pay attention to a number of factors that have not been discussed in this paper. In other words, further research efforts might attempt to incorporate variables such as economic, cultural, regional and industrial factors into the research framework to improve our understanding of the global telecommunication networks. Corporate financial strategy, development in the communication technologies, changes in media policies, and national and global economic conditions should be included in analysis of the structure of the global media network. For example, the Telecommunication Act of 1996 and the development of digital technology are seen to have opened vast opportunities for the media industry (Chon et al., 2001). Thus, new distribution channels and policy deregulation may cause the structure of the media industries to change. As Madhavan et al. (1998) argue, “some industry events, such as fundamental regulatory reform or radical technological change, potentially change the basis of competition in an industry” (p.443). In addition, international regulatory reforms such as the WTO agreement on basic telecommunications services in 1998 may also affect the structure of the media industry.

Authors: Chon, Bum Soo. and Barnett, George.
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Global Telecommunication 21
relationships for the telecommunication industry, excluding weak ties. Consequently, this study
did not consider the strength of alliances among telecommunication firms at the various levels.
Although Contractor and Lorange (1988) developed an ordinal scale for measuring the strength
of alliances, scholars argue that it did not differentiate weak ties from strong ties (Rowley et al.,
2000). Thus, it needs to develop the measurement scales to examine different interorganizational
alliances.
These limitations suggest several directions for future research. Future research will have
to pay attention to a number of factors that have not been discussed in this paper. In other words,
further research efforts might attempt to incorporate variables such as economic, cultural,
regional and industrial factors into the research framework to improve our understanding of the
global telecommunication networks. Corporate financial strategy, development in the
communication technologies, changes in media policies, and national and global economic
conditions should be included in analysis of the structure of the global media network. For
example, the Telecommunication Act of 1996 and the development of digital technology are seen
to have opened vast opportunities for the media industry (Chon et al., 2001). Thus, new
distribution channels and policy deregulation may cause the structure of the media industries to
change. As Madhavan et al. (1998) argue, “some industry events, such as fundamental regulatory
reform or radical technological change, potentially change the basis of competition in an
industry” (p.443). In addition, international regulatory reforms such as the WTO agreement on
basic telecommunications services in 1998 may also affect the structure of the media industry.


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