The Effects of Competitiveness on Telecommunication Service Quality

경쟁도입 및 경쟁심화가 유선통신 서비스품질에 미치는 영향에 관한 탐색적 연구 - 국제전화사업을 중심으로 -

Economists have advocated that the market competitiveness improved the firm's productivity and eventually its service quality. However, the previous researches did not provide the empirical results enough to prove that the competitiveness do improve the service quality. In this paper, we conducted an empirical research to find whether the competition induces the quality of service. The telecommunication industry was chosen since it went through the increasing competition along with a high attention. We found that competition itself does not guarantee the quality of service. It is the intensity of competition that improves the service quality. The service quality depends mainly on the competitor's competence, i.e. the intensity of competition rather than the competition itself. In sum, when we want tc improve the service quality as well as the productivity, we had better increase the intensity of competition by allowing many new strong entities.