Open AccessNetwork Intensity: Assessing The Strategic Value of Installed Base
Author(s) -
David P. McIntyre
Publication year - 1970
Publication title -
journal of business strategies
Language(s) - English
Resource type - Journals
eISSN - 2162-6901
pISSN - 0887-2058
DOI - 10.54155/jbs.28.2.177-195
Subject(s) - variation (astronomy) , base (topology) , intensity (physics) , industrial organization , econometrics , computer science , mathematics , business , physics , mathematical analysis , quantum mechanics , astrophysics
The purpose of this research is to explore variation in the influence of networkeffects across competitive settings. Specifically, this study tests for significantdifferences in the impact of a product’s installed base on its growth in an industryinfluenced by network effects, application software. Variation in size-on-growth effectsacross industry segments is conjectured to be a function of the network intensity,or degree of consumer interdependence, of the segments. The results illustratesignificant variation in the magnitude of size-on-growth effects across segments,consistent with the notion of network intensity. Implications for strategy in hightechnologysettings are discussed.