Introducing the inverted Icarus paradox in business history – Evidence from David and Goliath in the Swedish telecommunications industry 1981–1990

Previous research in business and management history has identified the Icarus paradox, which describes how organisations may fall due to overconfidence and hubris. We build upon previous research on paradoxes in business history and introduce the notion of an inverted Icarus paradox. Using rich arc...

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Bibliographic Details
Published in:Business history 2024, p.1-26
Main Authors: Eriksson, Klas, Lakomaa, Erik, Nykvist, Rasmus, Sandström, Christian
Format: Article
Language:English
Subjects:
Comvik
corporate political activity
David and Goliath
disruptive innovation
entrepreneurship
Icarus paradox
institutional entrepreneurship
institutions
regulation
regulatory capture
telecommunications
Televerket
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Summary:Previous research in business and management history has identified the Icarus paradox, which describes how organisations may fall due to overconfidence and hubris. We build upon previous research on paradoxes in business history and introduce the notion of an inverted Icarus paradox. Using rich archival sources coded in a relational database, we show how an entrant firm, Comvik, outmanoeuvred an established government monopoly in the non-market domain from 1980 to 1990, despite inferior resources and a weak market position. The government monopoly Televerket faced an inverted Icarus paradox; it could not leverage its strengths and political connections as they were stuck in a David versus Goliath narrative where public opinion was more sympathetic to the entrant firm Comvik.
ISSN:0007-6791
1743-7938
1743-7938
DOI:10.1080/00076791.2023.2292134