Identifying innovation strategy by examining business ecosystem: Exploratory research on Korea smart-phone market via network analysis

The fixed-line system has been the pivotal in the telecommunications industry. However, the current industrial environment is confronting tremendous changes. One of the most representative examples is the coming of the `Smart era´ being provoked by high-speed mobile telecommunications. This megatrend is summarized by the platform strategy based on the concept of business ecosystem. Therefore, this study aims to provide direction for an innovation strategy for heterogeneous industries. To be specific, we investigate the business chain and strategic status of firms focusing on the mobile industry. Methodology: we use a conceptual dynamic network model to visualize the structure of linkages between OS, device, and telecommunications service over the period 2008 to 2011. Conclusion: the results of this research show each firm´s behavior depends upon the particular business combination strategy. These results reveal the central importance of architecture innovation by describing the role played by different combinations among heterogeneous products and services. Through this study, we expect firms can establish industrial platforms which achieve both high productivity and a healthy business ecosystem.