NETWORK EXTERNALITY (NE) IN THE DIGITAL AND INFORMATION TECHNOLOGY MARKET
a systematic review
DOI:
https://doi.org/10.21171/ges.v19i53.3747Palavras-chave:
network externalities, digital platforms, technology adoption, systematic literature review, network effectsResumo
Network externalities play a central role in the adoption and diffusion of digital and information technologies, as the value of a technology increasingly depends on the size and composition of its installed user base. Despite a long-standing theoretical tradition, empirical findings on network externalities remain fragmented across disciplines and application contexts. This study addresses this gap by conducting a systematic literature review of empirical research on network externalities in the context of innovation, digital technologies, and disruptive technologies. Articles were retrieved from the Web of Science, Scopus, and ScienceDirect databases using predefined search strings and selection criteria, resulting in a final sample of 14 high-impact empirical studies. The review synthesizes prior findings by organizing the literature according to areas of application, research objectives, and key outcomes, without claiming original empirical identification of the phenomenon. The results show that network externalities generate both positive and negative effects on technology adoption, market dynamics, and value capture, depending on factors such as compatibility, complement availability, pricing strategies, and social influence mechanisms. Based on this synthesis, the study proposes an installed-base-driven network externality framework that integrates technical compatibility and social amplification mechanisms to explain adoption dynamics. This framework contributes to theory by clarifying the conditions under which network externalities enhance diffusion while constraining firm profitability, and by delineating boundary conditions for future research and managerial application.
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