Abstract

The prevalence of advanced mobile phones has increased the popularity of mobile data services (MDS). But, the flood of new MDS in the market has caused hyper-competition among MDS providers. While the market is fertile, only a few MDS providers make money. This research studies the question of MDS profitability (popularity) from two angles. First, the research posits that one strategic advantage of certain MDS providers is their ability to rapidly innovate. Second, the research posits that innovation inspiration can be derived from reviews ubiquitous in MDS download sites such as the Apple iStore and Appszoom. A statistical analysis of Appszoom data reveals that online reviews positively impact both MDS innovation and popularity. Also, MDS innovation is found to positively mediate the relationship between online reviews and MDS popularity. Theoretical and practical contributions are discussed.

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