Francisco-Jose Molina Castillo, Michael A. Stanko, Roger Calantone
Existing research offers managers limited guidance regarding how to successfully introduce a product that exhibits network externalities or substantial switching costs. In addition, little is known regarding the consequences of network externalities on short-term new product performance. Based on a study of 255 firms, the objective of this paper is to gain a deeper understanding of how to benefit from network externalities through product innovativeness and switching costs. Preliminary results of the research shows that both technological and market newness have an indirect impact on short-term new product performance through network externalities. Interesting recommendations can be obtained to increase short-term new product performance for products that exhibit network externalities or switching costs.
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