The Market that Never was: Turf Wars and Failed Alliances in Mobile Payments



In this study, we explore the research question of how firms from different industries negotiate an architecture for a nascent market. We investigated this question in real time between 2006 and 2011 in the setting of the nascent mobile payment market, a market at the convergence of the telecommunications and financial services industries. The findings show that new markets may be delayed or fail to emerge if the market participants cannot agree on a market architecture. This agreement may be a particularly difficult process when the nascent markets emerge at the intersection of different industries as firms from these industries may have different backgrounds, experiences and interests in the new market while they have no track record of working together. The main theoretical contributions of our findings are to resource dependence theory, new market formation, and bargaining literature in economics.
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Carolien Heintjes