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Battles of mobile payment networks: The impacts of network structures, technology complementarities and institutional mechanisms on consumer loyalty
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2022 | Information Systems Journal | Citations: 1
Authors: Gong, Xiang; Cheung, Christy M. K.; Liu, Shan; Zhang, Kem Z. K.; Lee, Matthew K. O.

Abstract: Most information systems (IS) research takes for granted that consumers' adoptio ... Expand

Abstract: Most information systems (IS) research takes for granted that consumers' adoption and the use of mobile payment (MP) applications are motivated by generic factors such as perceived usefulness and perceived ease of use. Challenging this assumption, we argue that the salient contextual characteristics of MP applications compel a reconsideration and problematization of research on MP adoption and use. Drawing on network effect theory, we examined how contextual network effects and contextual network types determine MP consumer loyalty. Using a mixed methods design, we find that direct network effects (i.e., network size, network centrality, network capability), indirect network effects (i.e., platform–application complementarity, application–service complementarity, service–strategy complementarity) and negative network effects (i.e., general institutional structure, general structural assurance, local institutional structure and local structural assurance) are key determinants of perceived benefits, which further promote MP consumer loyalty. Furthermore, except for general institutional structure and general structural assurance, all of the network effects are important predictors of switching costs, which influence MP consumer loyalty. Finally, the impacts of network effects on MP consumer loyalty differ between consumer- and service-oriented networks. Our study enriches the IS literature by problematizing the core assumption underlying the MP adoption and use research and offering a contextual explanation of MP consumer loyalty. Our work also provides practitioners with insights into how to better leverage network effects on MP consumer loyalty. Collapse

Semantic filters: network effect theory

Topics: network effect digital platform switching cost WeChat technology adoption

Methods: qualitative interview survey mixed method personal interview qualitative coding

Theories: network effect theory technology acceptance model unified theory of acceptance and use of technology theory of economic growth
An Information Systems Design Theory for Service Network Effects
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2020 | Journal of the Association for Information Systems | Citations: 4
Authors: Janiesch, Christian; Rosenkranz, Christoph; Scholten, Ulrich

Abstract: Service platforms make software applications available as a service to end users ... Expand

Abstract: Service platforms make software applications available as a service to end users. Platforms enable noticeable economic benefits for scaling and transforming a business. Their long-term competitiveness is ensured in controlled cooperation with channel intermediaries and network partners. Hence, service platforms must be designed to harness self-enforcing effects of value generation, so-called network effects. In an exaptation of existing knowledge, we present an information systems design theory to inform the design of methods that analyze, describe, and guide the design of service platforms through the means of causal loops and control methods. We describe the theory’s purpose and scope as well as the underlying justificatory knowledge behind the constructs and principles of form and function. The design theory covers the design of all service platform participants and activities as well as their transactions and influences in areas of staged platform authority, using enforcing and incentivizing control methods. We demonstrate the principles of implementation with an expository instantiation and apply it to the M-Engineering service platform, which offers surveillance, control, and data acquisition solutions. Furthermore, we present and discuss testable propositions and a study design to evaluate our design principles. Collapse

Semantic filters: network effect theory

Topics: network effect digital platform Facebook online learning system service quality

Methods: design principle design artifact design science design methodology survey

Theories: control theory critical mass theory social network theory network effect theory cognitive theory of multimedia learning
Growth, Complexity, and Generativity of Digital Platforms: The Case of Otto.de

2019 | International Conference on Information Systems | Citations: 0
Authors: Fuerstenau, Daniel; Rothe, Hannes; Baiyere, Abayomi; Schulte-Althoff, Matthias; Masak, Dieter; Schewina, Kai

Abstract: We study the growth, complexity, and generativity of a digital platform—Otto.de. ... Expand

Abstract: We study the growth, complexity, and generativity of a digital platform—Otto.de. Through a longitudinal analysis of the company’s 65 GitHub open source repositories over a period of 6.5 years, we find a) support for a superlinear growth pattern, b) a structural split in the platform into two clusters, and c) indication that more active repositories will be more generative and in turn more popular. These findings have implications for scholars studying platform evolution as well as for companies opening up their internal IT platforms. Collapse

Semantic filters: network effect theory

Topics: digital platform open source microservice architecture blog innovation management

Methods: regression analysis method descriptive statistic longitudinal research network analysis post analysis

Theories: signaling theory network effect theory
Battles of Mobile Payment Networks: The Impacts of Network Structure and Technology Complementarity on Consumer Loyalty

2017 | International Conference on Information Systems | Citations: 0
Authors: Zhang, Kem Z.K.; Yang, Qianwen; Gong, Xiang; Lee, Matthew K.O.

Abstract: This study examines the impacts of network effect strategies, namely network str ... Expand

Abstract: This study examines the impacts of network effect strategies, namely network structure and technology complementarity, on mobile payment (MP) loyalty. Drawing on network effect and the dedication/constraint-based model, this study proposes that network structure and technology complementarity will reinforce perceived benefits (i.e., dedication factor) and switching cost (i.e., constraint factor), which in turn formulate MP loyalty. We conduct an online survey with 318 MP users to empirically validate the model. The key findings include (1) network structure is a formative construct with size, centrality, and capability dimensions, whereas technology complementarity is a multidimensional construct with platform-application, application-service, and service-strategy elements; (2) network structure and technology complementarity exerts influences on MP loyalty through the underlying dedication-based mechanism, i.e., perceived benefits, and constraint-based mechanism, i.e., switching cost. Theoretical and practical implications and the opportunities for future research are discussed. Collapse

Semantic filters: network effect theory

Topics: switching cost network effect digital platform mobile system mobile payment

Methods: survey partial least squares regression literature study statistical hypothesis test theory development

Theories: network effect theory
STANDARD DIFFUSION IN GROWING NETWORKS: MODELING INTERACTION PATTERNS

2014 | European Conference On Information Systems | Citations: 0
Authors: Fürstenau, Daniel; Kliewer, Natalia

Abstract: Size matters for standardization efforts: Newly introduced, more efficient stand ... Expand

Abstract: Size matters for standardization efforts: Newly introduced, more efficient standards are often disadvantaged because they have smaller networks. Networks for commercial and technical collaboration –for instance in passenger transportation – however, suggest that network size is not all that matters. Network effect models should also account for specific interaction patterns and growth processes. Emerging islands of shared technologies may then be explained by close-knit, non-proportional interactions among members of alliances and the like. To test the effects of proportionality, degree of interaction, and preferentiality, we model standard diffusion in a growing network of organizations linked through different patterns of interaction. Extreme case analysis and agent-based simulation show that proportional and non-proportional interactions have different, non-monotonic effects on standardization outcomes. Proportional interactions – formed as a function of a growing network size – result in a path-dependent trajectory where an increasing number of links promote one standard’s dominance. Non-proportional interactions, in contrast, limit network effects: Multi-standard persistence becomes more likely as new agents are less dependent on the total number of adopters in the network. We illustrate theoretical implications and planned next steps for assessing diffusion scenarios of a new standard in airline IT and distribution. Collapse

Semantic filters: network effect theory

Topics: network effect airline information system decision making

Methods: network analysis case study theory development agent based simulation

Theories: network effect theory
Network effects as drivers of individual technology adoption: Analyzing adoption and diffusion of mobile communication services
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2008 | Information Systems Frontiers | Citations: 12
Authors: Beck, Roman; Beimborn, Daniel; Weitzel, Tim; König, Wolfgang

Abstract: Adoption research has largely ignored the dynamic impact of network effects on t ... Expand

Abstract: Adoption research has largely ignored the dynamic impact of network effects on technology adoption and diffusion. For example, some technologies become more attractive the more social peers use them as well. But adoption at the same time increases the value for the peers and thereby their adoption decisions as well. Unfortunately, interdependencies like these make adoption and diffusion patterns very complex. Drawing on network effect theory, we develop an adoption and diffusion model that explicitly considers the role of direct and indirect network effects for individual technology adoption, using mobile commerce adoption as application example. By applying a simulation approach we can exemplify and analyze the fundamental adoption dynamics given rise to by network effects. We thereby propose a way of how to incorporate network effects into adoption research and disclose the role of the technology diffusion lifecycle for individual adoption. Collapse

Semantic filters: network effect theory

Topics: network effect technology adoption mobile system communication service infrastructure mobile phone

Methods: simulation sensitivity analysis survey

Theories: network effect theory diffusion of innovations theory
eValue and Value‐driven User Responses to Information Technology
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2007 | Electronic Markets | Citations: 0
Authors: Shumarova, Elitsa; Swatman, Paul A.

Abstract: This paper explores eValue creation, assessment and distribution within communit ... Expand

Abstract: This paper explores eValue creation, assessment and distribution within communities joined through the Web, and the possible implications on end‐user acceptance of information technology (IT). We undertake to theorize more richly than has heretofore been done on the decision processing perspective of user acceptance of IT and, based on that, analyse different types of value‐driven user motivations. Specifically, we draw on two metaphorical constructs – ‘attention economy’ and ‘high‐tech gift economy’ – in order to understand value‐driven user responses to IT, and illustrate them through the example of Open Source Software (OSS) development teams. The focal point of interest is the adoption‐diffusion continuum (from Prior Use to Post‐adoptive Behaviour) within the context of end‐user decision processing. A rough eValue anthology is introduced as a secondary epistemological level to aid clarifying when and how value‐rational end‐consumer action affects attitude toward use. The analysis is based on a unified view on user acceptance decision processing, combining the management perspective (Cooper and Zmud 1990), the user perspective (Rogers 1995), the organizational perspective (Swanson and Ramiller 2004), with emphasis on the decision processing perspective (Engel et al. 2001). Collapse

Semantic filters: network effect theory

Topics: user acceptance diffusion of innovation technology adoption decision making open source

Methods: design artifact theory development cross sectional research business process modeling

Theories: adaptation-level theory network effect theory economic theory
Migration to open-standard interorganizational systems: network effects, switching costs, and path dependency

2006 | Management Information Systems Quarterly | Citations: 6
Authors: Zhu, Kevin; Kraemer, Kenneth L.; Gurbaxani, Vijay; Xu, Sean Xin

Abstract: As firms seek to improve coordination through the ii.se of electronic interorga ... Expand

Abstract: As firms seek to improve coordination through the ii.se of electronic interorganizational systems (IOS), open standards are becoming increasingly important. To better understand the process of standards diffusion, we investigate firms ' migration from proprietaty or less-open IOS (i.e.. electronic data interchange or EDI) to open-standard IOS (i.e., the Internet). Theoretical work in economics suggests that network effects are a determinant of network adoption, yet the extant literature falls short of empirical testing ofthe theory.We develop a conceptual model that features network effects, expected benefits, and adoption costs as prominent antecedents. We examine the model on a large dataset of 1,394 firms. The empirical results demonstrate the significant impacts of network effects on open-standard IOS adoption. We find that adoption costs are a significant barrier to openstandard IOS adoption, but EDI users and nonusers treat this very differently: EDI users are much more sensitive to the costs of switching to the new standard. This fmding illustrates that experience with older standards may create switching costs and make it difficult to shift to open and potentially better standards, a phenomenon called "excess inertia " in technology change. Further testing the underlying factors that contribute to network effects and adoption costs, we find that trading community' influence is a key driver of network effects, while managerial complexity, as opposed to financial costs, is a key determinant of adoption costs. Overall we believe that this study, based on a rigorous empirical analysis ofa unique international data.iet. provides valuable insights into a set of key factors that influence standards diffusion. Collapse

Semantic filters: network effect theory

Topics: network effect electronic data interchange switching cost internet technology IT manager

Methods: conceptual modelling survey partial least squares regression statistical hypothesis test literature study

Theories: network effect theory diffusion of innovations theory transaction cost economics

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Found 8 articles

Battles of mobile payment networks: The impacts of network structures, technology complementarities and institutional mechanisms on consumer loyalty

An Information Systems Design Theory for Service Network Effects

Growth, Complexity, and Generativity of Digital Platforms: The Case of Otto.de

Battles of Mobile Payment Networks: The Impacts of Network Structure and Technology Complementarity on Consumer Loyalty

STANDARD DIFFUSION IN GROWING NETWORKS: MODELING INTERACTION PATTERNS

Network effects as drivers of individual technology adoption: Analyzing adoption and diffusion of mobile communication services

eValue and Value‐driven User Responses to Information Technology

Migration to open-standard interorganizational systems: network effects, switching costs, and path dependency