Technological convergence in the IT industry: the role of strategic technology alliances and technological competencies

For some time now, the convergence of the telecommunications and computer industries into a single 'information and entertainment' industry has been predicted. The acquisitions that appeared to be bringing such a convergence about have not, however, proved particularly successful. The paper suggests that one factor behind the relatively low degree of convergence may be inertia. Following evolutionary and ecological theory, the paper argues that both external and internal inertial forces reduce the ability of firms to deal with changes in their technological cores. The paper concludes that technological convergence, although apparent on the technological and product/market level, does not seem to have affected the 'core' competencies of major IT companies.