COMPLEMENTORS’ DECISIONS ON PARTNERSHIP RETENTION IN MARKETS WITH NETWORK EXTERNALITIES

2019 ◽  
Vol 24 (06) ◽  
pp. 2050059
Author(s):  
KYOOTAI LEE ◽  
KAILASH JOSHI
Keyword(s):  
Path Dependence ◽  
Technology Development ◽  
Network Externalities ◽  
Network Size ◽  
Network Externality ◽  
Uncertain Network ◽  
Technology Platforms ◽  
Network Markets ◽  
Lock In ◽  
The Relationship

Complementors are likely to review and assess the dynamics of technology platforms in their quest for raising future revenues while attempting to minimize switching costs in their partnership retention decisions. This study aims to investigate the factors that complementors employ in assessing their current partnerships in markets with network externalities. Survey data was collected from the chief-level executives of complementors in software industries. The results show that network size of partner’s technologies and complementors’ technological compatibility positively influence partnership retention. Complementors’ technological lock-in positively moderates the relationship between network size and partnership retention. Technological uncertainty of partner’s technologies negatively moderates the relationship among network size, technological lock-in, and partnership retention. But it positively moderates the relationship among complementors’ technological compatibility, technological lock-in, and partnership retention. While incorporating the aspects of network externality and path dependence in technology development into the inter-firm relationship literature, this study contributes to reconciling the possible opposing explanations of their roles, and adds new insights for understanding relationship stability in uncertain network markets.

Effects of network externalities on user loyalty to online B2B platforms: an empirical study

2019 ◽  
Vol 33 (2) ◽  
pp. 309-334
Author(s):  
Yonghua Cen ◽  
Li Li
Keyword(s):  
User Satisfaction ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Network Externalities ◽  
Perceived Value ◽  
Network Size ◽  
Network Externality ◽  
Equation Modeling ◽  
Content Type

Purpose Given a product or service, the number of its installed user base has a significant positive effect on the existing users’ loyalty and new users’ conversion. This effect is conceptualized as network externalities in economics. Network externalities are supposed to be particularly striking in nowadays online business-to-business (B2B) platforms, but yet the mystery behind their effects on user loyalty to online B2B platforms remains to be delicately unraveled. The purpose of this paper is to discover the factors driving users’ loyalty, especially buyers’ loyalty, to online B2B platforms, by highlighting the impacts of network externalities on loyalty and other mediating factors. Design/methodology/approach A conceptual model of buyer loyalty under network externalities is elaborated. The reliability and validity of the instruments of the latent model constructs are assessed by confirmatory factor analysis, and the hypothesized causal relationships among the constructs are tested by structural equation modeling, on 710 valid buyer samples collected from a famous online B2B platform in China. Findings The analysis demonstrates that: perceived value, user satisfaction and switching costs are the major predictors of buyer loyalty to online B2B platforms characterized by network externalities; network externalities positively account for buyer loyalty by contributing to perceived value, user satisfaction and switching costs; and direct network externality (measured by perceived network size and perceived external prestige) has a significant effect on indirect network externality (measured by perceived compatibility and perceived complementarity). Originality/value The findings allow the authors to conclude meaningful managerial implications for online B2B service providers to build up loyal user bases through improving users’ perceptions of network externalities, switching costs and value.

scholarly journals Examining Protection Motivation and Network Externality Perspective Regarding the Continued Intention to Use M-Health Apps

2021 ◽  
Vol 18 (11) ◽  
pp. 5684
Author(s):  
Yumei Luo ◽  
Guiping Wang ◽  
Yuwei Li ◽  
Qiongwei Ye
Keyword(s):  
Self Efficacy ◽  
Network Externalities ◽  
Network Externality ◽  
Intention To Use ◽  
Protection Motivation ◽  
Direct Impact ◽  
Perceived Vulnerability ◽  
Response Efficacy ◽  
Health Apps ◽  
Direct Network

M-health apps have developed rapidly and are widely accepted, but users’ continued intention to use m-health apps has not been fully explored. This study was designed to obtain a better understanding of users’ continued intention to use m-health apps. We developed a theoretical model by incorporating the protection motivation theory and network externalities and conducted an empirical study of a 368-respondent sample. The results showed that: (1) perceived vulnerability has a direct impact on users’ self-efficacy and response efficacy; (2) self-efficacy and response efficacy have a direct impact on users’ attitudes and continued intention; (3) network externalities affect users’ attitudes and continued intention, among which direct network externalities have an indirect impact on users’ continued intention through attitude; and (4) the impacts of self-efficacy, response efficacy, and indirect network externalities on continued intention are partially meditated by attitudes.

scholarly journals Multitasking NPOs: An Analysis of the Relationship Between Funding Intentions and Nonprofit Capacities

2021 ◽  
Author(s):  
Sara Stühlinger ◽  
Sophie E. Hersberger-Langloh
Keyword(s):  
Public Relations ◽  
Service Delivery ◽  
Nonprofit Organizations ◽  
Capacity Building ◽  
Survey Data ◽  
Funding Source ◽  
Regression Analyses ◽  
Funding Sources ◽  
Lock In ◽  
The Relationship

AbstractNonprofit organizations (NPOs) often find themselves under pressure to invest all of their available income in mission-related activities rather than in capacity building. We investigate one factor that can influence the decision to invest in such capacity-building tasks: funding sources pursued by an organization. Drawing on the benefits theory of nonprofit finance, we take these funding sources as predetermined by an organization’s mission and propose an extension of the theory by linking it to economic multitasking theory, which states that organizations prioritize tasks that offer greater and more measurable rewards. Through regression analyses of survey data from Swiss nonprofits, we analyze the extent to which funding sources sought affect the amount of effort invested in three areas of capacity building: public relations, impact focus, and resource attraction parameters. The results support the predictions of multitasking theory by showing that the effort invested in certain capacity-building tasks is affected considerably by seeking a specific funding source. The effects are stronger for resource attraction-related tasks than for tasks closer to the service delivery of NPOs. The results indicate that an organization’s mission affects not only the available funding sources but also the extent to which an organization invests in its capacities, which can lead to a ‘lock-in’ status for organizations.

Path Dependence and QWERTY's Lock-In: Toward a Veblenian Interpretation

2011 ◽  
Vol 45 (2) ◽  
pp. 457-464 ◽  
Author(s):  
John Hall ◽  
Iciar Dominguez Lacasa ◽  
Jutta Günther
Keyword(s):  
Path Dependence ◽  
Lock In

scholarly journals The Integrated Networks Model: Explaining Resource Allocations in Network Markets

2003 ◽  
Vol 67 (1) ◽  
pp. 29-45 ◽  
Author(s):  
Judy K. Frels ◽  
Tasadduq Shervani ◽  
Rajendra K. Srivastava
Keyword(s):  
Resource Allocation ◽  
Value Added ◽  
Information Technology Professionals ◽  
Integrated Networks ◽  
Windows Nt ◽  
Proposed Model ◽  
Network Markets ◽  
Business Customers ◽  
The Relationship ◽  
Allocation Decisions

The last decade has witnessed a shift from a focus on the value created by a single firm and product to an examination of the value created by networks of firms (or product ecosystems) in which assets are comingled with external entities. The authors examine these market-based assets in the context of network markets and propose an Integrated Networks model in which three types of networks—user, complements, and producer—add value or enhance the attractiveness of the associated focal product. The authors empirically test the proposed model by surveying information technology professionals on their resource allocation decisions regarding the Unix and Windows NT operating systems. The findings suggest that the value added by these three networks is significantly and positively associated with resources allocated by business customers to competing products. The results also show that the three networks mediate the relationship between stand-alone product performance and resource allocation.

Aging and Technology: A Developmental View

1996 ◽  
Vol 40 (3) ◽  
pp. 138-140 ◽  
Author(s):  
J.L. Fozard
Keyword(s):  
Medical Care ◽  
Technology Development ◽  
Consumer Involvement ◽  
Working Environment ◽  
Developmental Approach ◽  
Aged People ◽  
Integration Of Technology ◽  
Work Education ◽  
Aging Persons ◽  
The Relationship

Applications of technology to improve the living and working environment and medical care of aging and aged people define a newly developing discipline called gerontechnology. Both this field and the human factors applications to aging that are embedded in it require a developmental view of the relationship between a person and her/his environment. From a developmental viewpoint, technology can affect aging through prevention of chronic problems that limit mobility; enhancement of social activities, work, education and recreation, and compensation for impaired functioning. Integration of technology into the lives of aging persons reacquires a developmental approach to the design of products and environments, consumer involvement in design and significant changes in the infrastructure for technology development and dispersal.

Path Dependence

2017 ◽  
Author(s):  
Michelle Hegmon
Keyword(s):  
Decision Making ◽  
Path Dependence ◽  
General Level ◽  
Historical Contingency ◽  
Difficult Decision ◽  
Critical Junctures ◽  
Potential Applications ◽  
Path Dependent ◽  
Historical Sequences ◽  
Lock In

Path dependence concepts, thus far, have seen little application in archaeology, but they have great potential. At a general level, these concepts provide tools for theorizing historical sequences, such as patterns of settlement on a landscape and divergent historical traditions. Potential applications include issues of historical contingency in the late Rio Grande, settlement in the Mesa Verde region, and divergent trajectories in the post-Chaco period. Specific concepts from path dependence theory, including lock-in and critical junctures, are illustrated by an analysis of the growth of Hohokam irrigation, which exhibited a path-dependent trajectory. As archaeological study of path dependence builds awareness of the importance of decision-making on the future, it contributes to difficult decision-making in today’s world.

The Relationship between the Network Externalities of Complementary Modularity

2011 ◽  
Vol 486 ◽  
pp. 313-316
Author(s):  
Zu Ying Huang ◽  
Xing Liu
Keyword(s):  
Network Externalities ◽  
Equilibrium Price ◽  
The Core ◽  
Network Strength ◽  
The Relationship

This paper adds to the growing literature on the vertically specialized collaboration of modularity firms by applying a model in which complement and core products collaborate with each other in a network situation. More specifically, it investigates the influence of the complement’s network strength on the equilibrium price and output of the core product. The results thus characterize the relationship between the complement’s and the core products’ network strength during collaboration.

Virtual Marketing

2014 ◽  
pp. 16-36
Author(s):  
Grzegorz Mazurek
Keyword(s):  
Technology Development ◽  
Internet Usage ◽  
The Internet ◽  
Network Technology ◽  
Value Network ◽  
Marketing Activities ◽  
New Challenges ◽  
Effectiveness And Efficiency ◽  
The Relationship ◽  
A Company

For the last two decades, virtuality and virtualization processes have been considered as developing phenomena in management studies, particularly within the context of the creation of inter- and intra-organizational networks, establishing strong relationships with customers and the appreciation of intangible assets in marketing. The purpose of this chapter is to identify the main directions of virtualized marketing and present the detailed changes that occur in marketing due to extensive and intensive Internet usage and the directions of network technology development and its impact on prospective marketing activities. The proposed analyses help to understand the multifaceted impact of the Internet on marketing—its concept, activities, and organization—going much beyond simple “e-marketing” perspective. The presented conclusions can be of significant value for both researchers and marketers. It can particularly influence further research on the relationship between the marketing virtualization and the company’s performance, showing the real impact of such processes on the effectiveness and efficiency of a company. The final conclusions will be interesting to marketing managers, who in the cybermarketing era have to deal with new challenges of collaboration, customers’ engagement, and value network creation.

Positive vs. Negative Emotions and Network Size

2019 ◽  
pp. 284-297 ◽  
Author(s):  
Yeslam Al-Saggaf
Keyword(s):  
Positive Emotions ◽  
Negative Emotions ◽  
Network Size ◽  
The Relationship ◽  
Positive And Negative Emotions

This chapter looks at the relationship between the expression of positive and negative emotions in Twitter and users' network size. The questions that guided this study are: Do users who tweet twice or more “I am bored,” “I am excited,” “I feel lonely,” “I feel loved,” “I feel sad,” and “I feel happy” gain more followers and friends or lose them? Do users who express positive emotions twice or more have more followers and friends compared to users who express negative emotions or less? Do users who express boredom, excitement, loneliness, feeling loved, sadness, and happiness twice or more interact more with their networks or less? To address these questions, the study collected 35,096 English tweets in 2016. The findings indicate that users who tweeted these emotions, their number of followers and number of friends have increased, not decreased and that only users who expressed excitement had more followers and friends than users who expressed boredom. The study contributes to the literature on the benefits that lonely, sad, and bored users can reap from expressing emotions in Twitter.

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