Modeling the factors and their inter-dependencies for investment decision in Indian mobile service sector

Abstract

Purpose

The purpose of this paper is to identify the factors influencing investment decisions in mobile services for profitablity and to become a global leader in mobile services sector.

Design/methodology/approach

A two-stage methodology is followed. In the first stage, factors are identified from literature, and are validated with telecommunication domain experts using the t-test. In the second stage, interpretive structural modeling (ISM) is used to understand the complex interrelationships among various factors. Further, MICMAC analysis is performed to analyze the indirect relationships and their effect on different factors by stabilizing the rank based on driving and dependence power. Based on MICMAC analysis, four clusters are identified to aid the policy- and decision-makers.

Findings

The major contribution of this research is imposing directions and dominance of various factors to make informed decision-making for investment in mobile services to meet the upcoming demand for mobile services in Indian telecommunication sector.

Research limitations/implications

The applicability of these research findings is limited to emerging telecommunication market.

Practical implications

This paper forms the basis for identifying various factors that act as the driving force for the Indian telecommunication operators to pay special attention toward mobile services, with telecommunication data analytics and developing context-aware services. This paper will aid policy-makers in the government, managers in telecommunication companies and other stakeholders such as content providers, channel partners and application developers to take a lead role in developing appropriate mobile services to meet local needs of Indian users. It will help in developing strategies to collaborate and motivate other stakeholders, including device manufacturers to understand and work collaboratively to become world leader in mobile services.

Originality/value

This paper provides a framework for understanding the various factors that encourage telecommunication companies to establish and invest in mobile services and setup a separate vertical in their organization with a focus on mobile services to meet the future demands of Indian market. Appropriate utilization of telecommunication data analytics, personalization of services, customization in local languages and support for convergent services would encourage adoption of mobile services.

Citation

Bhadani, A.K., Shankar, R. and Rao, D.V. (2016), "Modeling the factors and their inter-dependencies for investment decision in Indian mobile service sector", Journal of Modelling in Management, Vol. 11 No. 1, pp. 189-212. https://doi.org/10.1108/JM2-06-2014-0054