Inter-firm linkages in the IT industry in India: a case study of Telecom technologies

Abstract

In this paper we focus on the telecom segment of the IT sector with an objective to understand the nature and extent of inter-firm linkages in the industry, the role these linkages play in developing technological capabilities in participating firms, and the extent to which firms utilize these capabilities for growth and diversification. The study is based on a survey of large and small in the telecom sector and case studies of two interesting alliances Nortel s alliances in India and China and technology development network in Indian Institute of Technology, Chennai. The survey data as well as the case studies suggest that inter-firm linkages have helped Indian firms build technological capabilities. This paper analysed inter-firms alliances and their role in capability building at different levels. Insights from published data were combined with results of a primary survey and case studies to identify the key processes at work.