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Recovering from SuccessInnovation and Technology Management in Japan$
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D. Hugh Whittaker and Robert E. Cole

Print publication date: 2006

Print ISBN-13: 9780199297320

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199297320.001.0001

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The telecommunication industry: A turnaround in Japan's global presence

The telecommunication industry: A turnaround in Japan's global presence

Chapter:
(p.31) 2 The telecommunication industry: A turnaround in Japan's global presence
Source:
Recovering from Success
Author(s):

Robert E. Cole (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199297320.003.0002

This chapter shows how former strengths became debilitating weaknesses in the Japanese telecoms industry. NTT was the ‘locomotive’ which powered the industry with its ‘family’ of equipment suppliers in the 1980s. In the 1990s, however, it placed its bets on ‘competency enhancing’ ATM and ISDN, and fell victim to the ‘disruptive’ technology of TCP/IP. Strong relational ties with its suppliers led them as well to be weak competitors in the emergent Internet networking equipment industry, and a lack of new entrants forestalled alternatives from emerging within Japan. Japanese problems in international standard setting are identified, again betting on the established committee process and failing to engage in the fluid IETF process.

Keywords:   telecoms, NTT, internet, TCP/IP, network equipment industry, international standard setting

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