Work

Are network effects really all about size? The role of structure and conduct

Year: 2012

Type: article

Abstract: Rooted in neoclassical economics, network effects research has revolved around size, arguing that the more users a network has, the more valuable that network will be to each user. I argue that a network's structure (feasibility of transactions, centrality of members, structural holes, network ties, the number of roles each member plays) and its conduct (opportunistic behavior, reputation signaling, perceptions of trust) also have significant impacts on a network's value to users and to network providers. Network research that neglects structure and conduct and focuses only on size can lead to wrong strategies or a misleading research agenda. Copyright © 2012 John Wiley & Sons, Ltd.

Source: Strategic Management Journal

DOI: 10.1002/smj.2013

Author: Allan Afuah

Institution: University of Michigan

Language: English

Topic: Digital Platforms and Economics

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funder: College of Pharmacy, University of Michigan

OpenAlex ID: W1701337253