Innovation and cooperation in the telecom sector in Sweden 

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Method
Research approach
Positivism vs. Interpretivism

Two traditions mainly dominate research in social sciences: positivism and interpretivism (in other terms: hermeneutics) (Williamson, Burstein, & McKemmish, The Two Major Traditions of Research, 2002). These two approaches have been widely discussed and compared to each other in terms of pertinence and validity, but have always been found dichotomous (i.e. very different). Positivist research uses similar methods to those of natural sciences, with the purpose of linking cause and effect in findings achieved through experimentation (Dick, 1991). The methods used in the positivist approach are of a quantitative nature, while interpretivist research focuses on finding the meaning in social phenomena using qualitative methods. Interpretivist build on the construct that social sciences are studying phenomena that have resulted from human beings’ actions, and can therefore not be studied using the same methods as for natural sciences (Williamson et al., 2002). Purely positivist or interpretivist research is seldom found, but rather a mix of both with one dominating approach is the norm in research (Williamson et al., 2002). As far as this paper is concerned, an interpretivist (i.e. qualitative) approach is preferred to a positivist one, due to the nature of the topic at hand which involves exploring and creating an understanding of a system’s collaborative efforts, which concepts are created and interpreted directly from minds of people.

Deductive vs. Inductive

Reasoning styles have also been discussed and a distinction has been made between: (1) Deductive reasoning: where the argument moves from general principles/doctrines to particular cases/illustrations (Williamson et al., 2002). Generally this reasoning is used in instances where a theory is used to explain or confirm a phenomenon. (2) Inductive reasoning: begins with articular cases/illustrations and ends with general principles/doctrines (Williamson et al., 2002).
This thesis follows a deductive reasoning, as it starts by stating the phenomena to be studied, then lists the theories and principles relating to the field of study, to later lead to an analysis and explanation of the phenomena.

Quantitative vs. Qualitative

Quantitative research aim to test a theory, by processing amounts of data and deducing whether it holds true or not, while qualitative research explore an area where variables are unknown (Creswell, 2009). As the purpose is to form understanding of an environment and collaboration occurring within it, as well as how the one affects the other, the study leans towards a qualitative approach in order to develop a conceptual image (Morse, 1991). The qualitative research, which in this case will be limited to a time frame and between certain actors is most fittingly carried out in a case study, explained in the following section (Baxter & Jack, 2008).

Choice of method: Case Study

As discussed the paper opts for a study approach, in which an illustration of the relationships and dynamics in the telecommunications sector is provided, focusing on interplay between Ericsson and TeliaSonera specifically concerning the fourth generation of networks (4G). The reasoning is that when conducting an exploratory study such as the one concerned in this paper, gaining understanding of a phenomenon within a certain time frame, a case study is appropriate (Yin, 2009). Especially when current knowledge is lacking as to how and why things are the way they are (Darke & Shanks, 2002, cited in Williamson, 2002). A well-performed case study may also result in new research directions or challenge current theories (Saunders, Lewis, & Thornhill, 2007), which is central to this thesis.
In short, there are mainly explanatory case studies that aim to answer questions to causal links that are too difficult to answer through a survey; exploratory case studies that seek to investigate phenomena without any one clear set of outcomes; descriptive case studies in which a certain happening and its context are described (Yin, 2009). Stake (1995) also lists the intrinsic type where the researcher’s own interest is central to better understand a certain case but not build theory; as well as the instrumental case study in which there is a particular research question that could be answered by looking into a particular case. The latter is also supportive to the main purpose of the research, details ordinary activities and may help to refine theory (Stake, 1995). With that in mind, the instrumental case study is the chosen approaches the most fitting as the telecom sector in general and the 4Gact as a supportive case to the main purpose of determining the level of collaboration and embeddedness within the sector, and specifically between Ericsson and TeliaSonera.à With that brief review on the different types of case studies The type of case study opted for in this paper is the instrumental one, as there is a clear question in mind, how the collaboration, exchanges of information and general embeddedness between the two big player of the sector function together.
To answer a research question, a researcher may not only conduct a single holistic case study but also multiple case studies (Yin, 2009), or a collective case study as Stake (1995) refers to it. Regarding this matter, the choice falls upon a single holistic, case study. The reasoning behind the choice is that the 4G development and launch is a recent phenomenon including the two by far biggest players in the highly innovative Swedish telecommunications (Lindmark, Andersson, Bohlin, & Johansson, 2006), comprising the main bulk of activities within the area of study.
The time frame should be taken in consideration here, as it only allows for a single case to study, since each generation of network infrastructure is produced with a considerable time period separating it from the last (Yin, 2009). And in light of the new technological development the sector has seen since the third generation (c.f. section 4.1), the circumstances have changed and have made the 4G case quite unique. Thus, it would serve no purpose to include any other cases. With Ericsson and TeliaSonera in focus, it is a clear choice to conduct a single holistic case study, allowing the authors to gain as deep understanding as possible about the structure of the telecommunications sector.

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Data collection

Qualitative researchers have tapped into a wealth of ways to collect data relevant to the study of human experience; interviews, focus groups, documentary and visual data are just a few examples (Polkinghorne, 2005). Often a combination of these methods is required to paint a wholesome picture of the subject at hand, and often several data types are needed in order to offer several perspectives (Saunders et al., 2007). The case study at hand consists of a collection of primary and secondary data of both qualitative and quantitative nature, in order to offer the reader an overall idea of the state of the art in the Swedish telecom sector in terms of innovation dynamics and inter-firm collaboration. The following will discuss and describe the means and methods used to gather the empirical data used in this thesis.

Secondary quantitative data collection

Quantitative data was first collected for the purpose of determining and motivating the choice of sample; this process is detailed in Appendix A. The primary focus of the thesis was to understand and explore how highly innovative companies in challenging environments cope with the dilemma of choosing between a protective strategy and a collaborative innovation strategy.
First of all, an innovative environment needed to be determined, as the subject of the thesis requires observations from highly innovative industry. Several measurements were evaluated before settling on an adequate index to measure the innovativeness of an industry/sector (c.f. Appendix A).Patent data was obtained from the European Patent Office (EPO) (European Patent Office, 2011), and was used to compute the RTA (Revealed Technological Advantage) index for Sweden. Only granted patents were considered as they are better indicators of the quality of the patent and are therefore more relevant to measure (Archibugi & Pianta, 1996). Results of that analysis showed that Sweden holds a worldwide comparative advantage in terms of patenting activity in the telecommunications industry. These results have contributed to building the premises of this thesis as they were used to define the sample of interest.

Primary qualitative data collection: Interviews

Interviews have been chosen as a method of collecting primary qualitative data relevant to the purpose of the thesis, being the most relevant qualitative approach (Bryman & Bell, 2007). A strength with interviews as a data collection method is that the personal nature of it, the response rate to each question is likely to be higher than that of a traditional written questionnaire (Berg, 2001).
Interviews are inherently social encounters, dependent on the local interactional contingencies in which the speakers draw from, and co-construct, broader social norms” (Rapley, 2001, p. 303). A successful interview therefore, depends not only on the interviewee’s ability to answer questions with certainty and honesty; it is also the responsibility of the interviewer to create a suitable and comfortable atmosphere. Williamson et al. recommend interviewers to be neutral and dispassionate while at the same time encouraging participation by being enthusiastic and showing interest in the interviewees’ answers (2002).This has been taken in consideration when conducting the interviews. However, as the interviews were exclusively done via telephone, there was an inability to read the body language of the interviewee, on the other hand, the interviewee is not as likely to be influenced by any visual cues from the interviewers (Saunders et al., 2007).

Questionnaire

The purpose of the thesis is to investigate the highly innovative companies’ setting; to what extent they collaborate and create an understanding regarding the inner workings of the sector itself. The type of findings needed to answer this purpose is not of an exact nature, and relies on the far-reaching experience and expertise of the interviewees. Therefore, an open-ended questionnaire was more relevant in this case than a close-ended questionnaire, during the interviews (Berg, 2001). The latter would especially not have been appropriate because it does not allow for discussion and would not as effectively reveal interesting insights not widely known /or/ requires the authors to have an almost greater understanding of the phenomenon than the interviewees themselves. Open-ended questions return useful information when the subject of research is complex and does not have a finite or predetermined set of responses (Carey, Morgan, & Oxtoby, 1996) and provides as many details as possible.
Questionnaires were tailored to the interviewee’s area of expertise, in order to get the most out of their perspective and experience (Berg, 2001). However, a standard questionnaire was used as a guideline for the interviews, which was later, tailored to the breadth of experience of the interviewees (c.f. Appendix B). Both authors have conducted the interviews, which has allowed for different point of views to be expressed and covered in the form of a discussion. The conference format was preferred to a one sided phone conversation in this case.

Table of Contents
1. Introduction
1.1 Technological Innovations
1.2 Swedish Telecom Sector
1.3 Purpose and Research Questions
2. Theoretical background 
2.1 Dynamics of innovations
2.2 Innovation and cooperation
2.3 Summary of theoretical background
3. Method 
3.1 Research approach
3.2 Choice of method: Case Study .
3.3 Data collection
3.4 Data analysis strategy
3.5 Reliability and Validity
4. Case study – Innovation and cooperation in the telecom sector in Sweden 
4.1 Innovation in the Swedish Telecom Sector
4.2 Inter-firm collaboration
4.3 The fourth generation of Networks
5. Analysis 
5.1 Sectoral patterns
5.2 Inter-firm collaboration
6. Conclusions 
6.1 Conclusion
6.2 Discussion
6.3 Further research and critique of method
References
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Inter-firm Collaboration for Innovations Evidence from the Swedish Telecommunications Sector

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