Resumen de A strategic approach to network value in information markets
Lucio Fuentelsaz Lamata, Elisabet Garrido, Juan Pablo Maicas López
This paper extends previous research on network effects by proposing a theoretical model that studies the role that firm strategy plays in markets where network effects are important. We suggest that, instead of the exogenous character usually attributed to network effects, firms can influence them through their strategies. Moreover, we develop a causal relationship between network effects and network value, understanding that the latter is a better approach to the value the firm may generate in information markets. Our premise is that companies, by influencing users� expectations, users' coordination and perceived compatibility, can leverage network effects and network value. The strategies for increasing network value that we empirically test in the mobile telecommunications industry are entry timing, internationalization and switching costs management. Finally, this study not only seeks to understand the impact of firm strategy on network value, but also analyzes its subsequent impact on firm performance. Our main conclusion is that, in markets with network effects, strategy matters.
