Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 54, No. 2, pp.255-279
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2025
Received 24 Aug 2024 Revised 09 Oct 2024 Accepted 11 Oct 2024
DOI: https://doi.org/10.17287/kmr.2025.54.2.255

Strategies to Enhance Market Competitiveness of Korea’s Mobile Virtual Network Operators

Hannam Ro ; Hongsuk Yang ; Changhee Kim
(First Author) Seoul National University Business School hannamro@gmail.com
(Co-Author) Seoul National University Business School hongsuk@snu.ac.kr
(Corresponding Author) Incheon National University Business School ckim@inu.ac.kr
한국 가상 이동통신망 사업자의 시장 경쟁력 강화를 위한 전략
노한남 ; 양홍석 ; 김창희
(주저자) 서울대학교 경영대학
(공저자) 서울대학교 경영대학
(교신저자) 인천대학교 경영대학


Copyright 2025 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This study explores the dynamics of the Korean Mobile Virtual Network Operator (MVNO) industry, focusing on the strategic decisions small and medium-sized enterprises (SMEs) face between efficient management and technological advancement. In a sector dominated by subsidiaries of Mobile Network Operators (MNOs), SMEs encounter unique challenges in competing effectively. Using Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI), and Importance-Performance Analysis (IPA), this study evaluates the efficiencies and productivity changes of nine MVNO companies. The results indicate that while operational efficiency does not directly correlate with increased market revenue, advanced technology offers a significant advantage, boosting both productivity and customer satisfaction. Notably, technological advancements were found to have a more substantial impact on market competitiveness than efficient management. Our study suggests that SME MVNOs should prioritize technological innovations, such as data speed and service quality, to strengthen their market position. Our research also provides valuable insights into enhancing the competitiveness of Korean MVNOs and offers practical guidance for business strategies within the telecommunications sector.

Keywords:

Mobile Virtual Network Operator (MVNO), Technological Advancement, Efficient Management, Competitive Strategy

Acknowledgments

This study was supported by the Institute of Management Research at Seoul National University, Research Fund in 2024.

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∙The author Hannam Ro earned his M.S. in Operations Management from Seoul National University Business School and a B.S. in Management Science from the University of California, San Diego. He has worked as a management consultant since earning his master’s degree. His main research areas are optimization and business strategy.

∙The author Hongsuk Yang is a Professor of Operations Management at Seoul National University Business School. He holds a B.A. from Seoul National University, a M.S. in Industrial Engineering from Stanford University, and a Ph.D. from the University of Chicago Booth School of Business. His research areas include inventory management, supply chain management, and service operations.

∙The Corresponding author Changhee Kim is an Associate Professor of Management Science and Data Science at Incheon National University Business School. He earnd a B.B.A. from Sungkyunkwan University, a M.S. and Ph.D. in Operations Management from Seoul National University. His research interests include service operations management, optimization, and efficiency measurement.