Driving Sustainable Competitive Advantage in the Mobile Industry: Evidence from U.S. Wireless Carriers
Abstract
:1. Introduction
2. Materials and Methods
2.1. Service Quality in the Wireless Industry
2.2. Network Quality in the Wireless Industry
3. Methodology
3.1. Data Envelopment Analysis for Measuring Performance
3.2. Bootstrap DEA
- (1)
- Calculate the technical efficiency score of individual DMUs through the standard linear programming DEA model
- (2)
- Generate a random sample in the size L from { to utilize kernel density estimation to provide ,,
- (3)
- Calculate {( as a pseudo data set to generate reference bootstrap technology
- (4)
- Calculate the bootstrap efficiency estimation of each DMU’s technical efficiency score, , by finding the values of a Bootstrap corresponding model
- (5)
3.3. Service and Network Quality Efficiency Model
- H1: The distribution of management efficiency and service quality efficiency are the same across.
- H2: The distribution of management efficiency and network quality efficiency are the same across.
- H3: The distribution of management efficiency and market efficiency are the same across.
4. Result
4.1. Efficiency Analysis Results
4.2. Guidelines for Wireless Carriers
5. Conclusions
6. Limitations
Author Contributions
Conflicts of Interest
References
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Efficiency | Input | Source | Output | Source | |
---|---|---|---|---|---|
Model 1 | Management Efficiency | Total Asset Operating Expense | Annual report | Operating income Total revenue | Annual report |
Model 2 | Service Quality Efficiency | Total Asset Operating Expense | Annual report | Customer care Purchase experience | J.D. Power |
Model 3 | Network Quality Efficiency | Total Asset Operating Expense | Annual report | Download speed Upload speed | NOVARUM |
Model 4 | Market Efficiency | Service Quality Efficiency Score Network Quality Efficiency Score | 1st Stage DEA Results | Operating income Total revenue | Annual report |
Factors | Mean | Sum | SD | Min | Max | Unit |
---|---|---|---|---|---|---|
Operating Expenses | 66,194.58 | 794,335 | 39,527.32 | 23,424 | 117,505 | million USD |
Total Asset | 149,987 | 1,799,844 | 11,4957.7 | 9482.93 | 277,787 | million USD |
Customer Care | 762 | 9144 | 17.68 | 739 | 795 | 1000 points (Likert scale) |
Purchase Experience | 762.75 | 9153 | 22.47 | 741 | 798 | 1000points (Likert scale) |
Revenue | 74,453.25 | 893,439 | 49,769.7 | 19,719 | 128,752 | million USD |
Operating Income | 8441.17 | 101,294 | 12,626.03 | −6397 | 31,968 | million USD |
Download Speed | 3.29 | 39.45 | 2.72 | 0.62 | 9.12 | Mbps (4G) |
Upload Speed | 1.65 | 19.81 | 1.77 | 0.59 | 5.86 | Mbps (4G) |
DMU | Bootstrap Efficiency Mean | |||
---|---|---|---|---|
Management Efficiency | Service Quality Efficiency | Network Quality Efficiency | Market Efficiency | |
Verizon Wireless-2011 | 0.9300 | 0.2422 | 0.1068 | 1.0000 |
Sprint Nextel-2011 | 0.9196 | 0.7024 | 0.3283 | 0.2524 |
AT & T-2011 | 0.8938 | 0.1970 | 0.1274 | 1.0000 |
T-Mobile-2011 | 1.0000 | 1.0000 | 1.0000 | 0.1601 |
Verizon Wireless-2012 | 0.9518 | 0.2287 | 0.1183 | 1.0000 |
Sprint Nextel-2012 | 0.9264 | 0.7045 | 0.3188 | 0.2548 |
AT & T-2012 | 0.9112 | 0.2001 | 0.1384 | 1.0000 |
T-Mobile-2012 | 0.7500 | 0.8945 | 1.0000 | 0.1532 |
Verizon Wireless-2013 | 1.0000 | 0.2749 | 1.0000 | 1.0000 |
Sprint Nextel-2013 | 0.9296 | 0.7238 | 0.5194 | 0.2627 |
AT & T-2013 | 1.0000 | 0.2493 | 0.7852 | 1.0000 |
T-Mobile-2013 | 0.8885 | 1.0000 | 1.0000 | 0.1897 |
Null Hypothesis | U Value 1,2 | W Value 1,2 | Sig. | Decision | |
---|---|---|---|---|---|
H1 | Management Efficiency ↔ | 22.00 | 100.00 | 0.0029 | Reject |
Service Quality Efficiency | |||||
H2 | Management Efficiency ↔ | 42.00 | 120.00 | 0.0887 | Accept |
Network Quality Efficiency | |||||
H3 | Management Efficiency ↔ | 63.00 | 141.00 | 0.6300 | Accept |
Market Efficiency |
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Kim, C.; Kim, S.W.; Kang, H.J. Driving Sustainable Competitive Advantage in the Mobile Industry: Evidence from U.S. Wireless Carriers. Sustainability 2016, 8, 659. https://doi.org/10.3390/su8070659
Kim C, Kim SW, Kang HJ. Driving Sustainable Competitive Advantage in the Mobile Industry: Evidence from U.S. Wireless Carriers. Sustainability. 2016; 8(7):659. https://doi.org/10.3390/su8070659
Chicago/Turabian StyleKim, Changhee, Soo Wook Kim, and Hee Jay Kang. 2016. "Driving Sustainable Competitive Advantage in the Mobile Industry: Evidence from U.S. Wireless Carriers" Sustainability 8, no. 7: 659. https://doi.org/10.3390/su8070659
APA StyleKim, C., Kim, S. W., & Kang, H. J. (2016). Driving Sustainable Competitive Advantage in the Mobile Industry: Evidence from U.S. Wireless Carriers. Sustainability, 8(7), 659. https://doi.org/10.3390/su8070659