Network externality (NE) in the digital and information technology market: a systematic review
a systematic review
DOI:
https://doi.org/10.21171/ges.v19i53.3747Keywords:
Network Externality, Digital Technology, Information Technology, Integrative Literature ReviewAbstract
Network externality occurs when demand for a product is directly influenced by the number of people who have already purchased it. Studying the effects of NE is relevant to understanding how new technologies undergo acceptance and diffusion processes. The research problem that governs this work is: What has been discussing the works that had as object of study the adoption of new technologies on the theme NE? Thus, the objective is to analyze how the field of research on the thematic NE that had as object of study the adoption of new technologies. We used the Web of Science, Science Direct and Scopus databases, considering the terms: Network Externality and innovation technology or disruptive technology. In the results it is possible to identify that higher NE does not indicate higher market share nor higher profits. They point out that in a motionless (static) market, consumers benefit from increased network externalities, outweighing the benefits of business. Network size can serve as a deterrent to the adoption and diffusion of newer technologies.
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