Technological capability development in a telecommunication firm: A case study of sri lanka telecom before and after privatization

This paper presents a framework to examine the development of technological capability in a telecommunications firm after its privatization. The framework is based on the value chain concept, which identifies the primary and support activities of a telecommunication service provider, and uses a three-step procedure to analyze the technological capability needs in these activities and to develop indicators to measure the extent to which such technology capabilities have developed after privatization. The components of each capability, its elements, and indicators for assessment of each indicator have been developed with three complementary research processes: extensive research of the technology, processes and management of telecommunication firms; literature review of technological capabilities; and in-depth interviews with experts at International Telecommunication Union, and senior experts-practioners at two leading telecommunications firms in Thailand. The research identifies the following technological capabilities in the primary and support activities: creation, design and engineering, marketing and selling, servicing, acquisition, human resource development, information technology and strategic planning. The elements of each capability and the indicators for assessment of the elements were determined from a thorough and in-depth understanding of the technical, managerial and operational processes in telecommunication firms.

The framework outlined above is then applied to Sri Lanka Telecom. Information on the technological capabilities in Sri Lanka Telecom was collected through in-depth interviews with top and middle management personnel. This information was then analyzed for comparison of technological capabilities before and after privatisation. Based on the comparison, we find that technological capability development in Sri Lanka Telecom progressed quite substantially after privatization.

The paper concludes with how the framework and procedure developed here could be applied in other contexts in identifying the technological capability needs, and the capability elements and indicators for their assessment.