Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1022500 | Technovation | 2006 | 6 Pages |
Abstract
Network effects are the basis of competitive advantage in digital economies. Although some researchers have indicated that technologies characterized by network effects are difficult to replace, real-world situations have not confirmed this argument. Challengers still defeat market leaders in markets with network effects. The analytical results presented here include the following: (1) a proposed new concept, resilience, can describe the resistive strength of a network to challenger customer-capturing strategies, (2) three types of networks can be identified based on their resilience values, and (3) high-resilience networks possessing technology are difficult to replace.
Keywords
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Authors
Ching-I Teng, Fan-Chen Tseng, David M. Chiang,