Network Effects and Latecomers’ Born-Global Strategy: Social Network Effect vs. Ecosystem Effect

2019 ◽  
Vol 2019 (1) ◽  
pp. 19475
Author(s):  
Sanghyun Park ◽  
Sungyong Chang
Keyword(s):  
Social Network ◽  
Network Effects ◽  
Global Strategy ◽  
Network Effect ◽  
Born Global

scholarly journals Borders of Network Effects and Early Internationalization as a Latecomer Strategy

2021 ◽  
Author(s):  
Sungyong Chang ◽  
Sanghyun Park
Keyword(s):  
Network Effects ◽  
Theoretical Work ◽  
Order Effect ◽  
Global Market ◽  
Global Strategy ◽  
Network Effect ◽  
Demand Side ◽  
Early Internationalization ◽  
Indirect Network Effects ◽  
Direct Network

Scholars have examined the persistent heterogeneity of firm performance from the entry-order effect perspective. In the international business literature, this perspective has been highlighted in research on early internationalization (i.e., the born global strategy). While prior work has focused on the heterogeneity of firm characteristics and capabilities, we present a demand-side view of early internationalization by focusing on network effects. Prior theoretical work on network effects has predicted that when network effects are prominent, survival is challenging for latecomers because of the installed bases of first movers in the global market. However, we see many cases, such as the mobile instant messenger (MIM) market, where no single winner dominates the global market and where many latecomers have survived by implementing early internationalization. We build upon Brian Arthur’s model of demand-side dynamics. The findings suggest that latecomers may overcome their disadvantages by pursuing early internationalization, especially when the direct network effects (i.e., social network effects) are stronger than the indirect network effects (i.e., installed base effects). The underlying rationale is that country borders often demarcate the reach of the direct network effect, limiting the power of installed bases.

Professional Social Network Site Participation

2012 ◽  
Vol 4 (4) ◽  
pp. 19-32 ◽  
Author(s):  
Craig C. Claybaugh ◽  
Peter Haried
Keyword(s):  
Social Networks ◽  
Social Network ◽  
Network Effects ◽  
Business Schools ◽  
Diffusion Theory ◽  
Critical Mass ◽  
Network Effect ◽  
Future Research ◽  
Innovation Diffusion Theory ◽  
Business Connections

Online professional social networks have become a noteworthy tool to help professionals create, strengthen, and maintain valuable business connections. However, the question remains as to who is actually using online professional social networks and how the diffusion of the social network has occurred. Looking at diffusion and usage through innovation diffusion theory, critical mass and a network effects lens, this paper seeks to examine the diffusion of an online professional social network (LinkedIn) for a specific population of university business schools. Using longitudinal analysis (2008 compared to 2011) our findings advocate network dynamics of homogeneous populations display consistent patterns of participation and non-participation. The authors’ findings suggest LinkedIn diffusion is not consistent across all business schools examined. A greater critical mass and network effect appears to have been achieved across larger research universities when compared to smaller university populations. An analysis of the results and future research directions are presented.

MANAGING QUALITY AND NETWORK EFFECTS IN THE HIGH-TECH MARKET: THE CASE OF RESEARCH AND DEVELOPMENT TOOLS IN LIFE SCIENCE INDUSTRY

2012 ◽  
Vol 16 (02) ◽  
pp. 1250009 ◽  
Author(s):  
YANSONG HU ◽  
DAMIEN McLOUGHLIN
Keyword(s):  
Social Network ◽  
Research And Development ◽  
Network Effects ◽  
Life Science ◽  
Current Theory ◽  
Third Party ◽  
Network Effect ◽  
High Tech ◽  
Unified Framework ◽  
Development Tools

We seek to extend current theory on research and development (R&D) tools and create new insights by adopting a multi-disciplinary approach and drawing from literatures on quality and network effects in the high-tech market. More specifically, we use a unified framework on quality and network effects, and examine two forms of quality effects (third party quality reviews and company-advertised quality) and two types of network effects (network externalities effect and social network effect) in driving the popularity and success of R&D tools. By tracking two categories of R&D tools in the life science industry for a decade, our research provides a sharper understanding of R&D tools and therefore can help R&D tool producers to accelerate the market acceptance of their new tools, which should promote faster innovation and ultimately benefit the whole R&D community.

Principles for sharing economy formation in the digital society

2020 ◽  
Vol 16 (5) ◽  
pp. 800-821
Author(s):  
E.V. Popov ◽  
K.A. Semyachkov
Keyword(s):  
Network Effects ◽  
Sharing Economy ◽  
Network Effect ◽  
Industrial Society ◽  
Economic Activities ◽  
Digital Platforms ◽  
Digital Society ◽  
Modern Economy ◽  
Characteristic Features ◽  
The Impact

Subject. The article addresses economic relations that are formed in various areas of economic application of digital platforms. The target of the research is the modern economy of digital platforms across different economic activities. Objectives. The aim is to systematize principles for share economy formation in the context of the digital society development. Methods. We employ general scientific methods of research. Results. The study shows that the development of digital platforms is one of the most important trends in the development of the modern economy. We classified certain characteristic features of modern digital platforms, analyzed principles for their creation. The paper emphasizes that the network effects achieved through the use of digital platforms are an important factor in the development of the share economy. The network effect describes the impact of the number of the platform users on the value created for each of them. The paper also considers differences in the organization of traditional economy companies and companies that are based on the digital platform model, reveals specifics of changes in socio-economic systems caused by the development of digital platforms, systematizes principles of the sharing economy formation in the context of the digital society development. Conclusions. The analyzed principles for sharing economy development on the basis of digital platforms can be applied to create models for the purpose of forecasting the transformation of economic activity in the post-industrial society.

scholarly journals The research of Born Global Firms’ transnational strategy

2020 ◽  
Vol 214 ◽  
pp. 03023
Author(s):  
Li Chong
Keyword(s):  
Market Integration ◽  
Global Market ◽  
Global Strategy ◽  
International Strategy ◽  
Social Responsiveness ◽  
Born Global ◽  
Global Business ◽  
Transnational Strategy ◽  
Multinational Strategy ◽  
Born Global Firms

With the development of global business, Born Global Firms are always sinking into various pressures which are related to economic factors, social factors and informational factors. This situation making Born Global Firms’ strategies is supposed to achieve those requirements that including global market integration, social responsiveness, worldwide learning. There are four important strategies which are widely used in Born Global Firms internationalization process that including multinational strategy, global strategy, international strategy, and transnational strategy. This essay will introduce pursuing transnational strategy and some difficulties existing in this process. Furthermore, an example of an entrepreneurial subsidiary will be chosen to explore and conduct further research.

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