Effects of Digital Transformation and Network Externalities in the Telecommunication Markets

Radukić, Snežana; Mastilo, Zoran; Kostić, Zorana

doi:10.2478/eoik-2019-0019

Cited by 10 publications

(6 citation statements)

References 15 publications

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“…How a digital platform affects network externalities (Halaburda et al, 2020), meaningful managerial implications for online B2B service providers to build a loyal user base through increasing user perceptions of network externalities, switching costs, and value. A number of studies have confirmed evidence of the effect of direct network externalities in the digital environment, digital transformation and the influence of network externalities contribute to an increase in the number of subscribers, a reduction in the number of networks (distortion of market competition), and a decrease in telecommunications prices (Radukić et al, 2020). Previous research on network externalities is generally in the telecommunications sector (Hung et al, 2020;Mouakket & Sun, 2019;Na et al, 2019), social networking sites (Hung et al, 2020;Mouakket & Sun, 2019), relating to digital technology (Lyu, Guo, & Chen, 2023;Pang, Ruan, & Wang, 2023).…”

Section: Various Companiesmentioning

confidence: 94%

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Network Externality as a Mediator on Business Growth:

Furinto,

Selamet,

Heriyati

et al. 2023

The Winners

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The Multilevel Marketing (MLM) business became a more dynamic and competitive environment that drove companies to be sustainable in their business. However, the practices were sometimes perceived to be challenging by some of them. The research aimed to determine the role of network externality on Business Growth in the network marketing industry, often called MLM industry. With a non-probability sampling approach, the data were collected using structured questionnaires that were sent through emails or hardcopy. The collected data were analyzed using the PLS-SEM method with SmartPLS software. The results reveal that network externalities fully mediate both digital adoption capabilities and strategic agility to sustainable business growth. Meanwhile, network externality partially mediates the perceived product advantage to sustainable business growth. The result shall be taken into action by the companies as a key strategy in performing their business.

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Section: Various Companiesmentioning

confidence: 94%

“…Previous research has tested externalities. networking in IT industry (Lee & Joshi, 2020;Mouakket & Sun, 2019), customer loyalty (Hung et al, 2020), digital platforms (Cen & Li, 2019;Halaburda et al, 2020;Radukić et al, 2020), and the desire to provide recommendations for product use (Bai et al, 2019).…”

Section: Various Companiesmentioning

confidence: 99%

Network Externality as a Mediator on Business Growth:

Furinto,

Selamet,

Heriyati

et al. 2023

The Winners

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“…Individuals show a growing propensity to acquire telecommunication services once the observable benefits of joining the networks drive them. This propensity usually increases irrespectively of the prices designed by telecommunication companies; hence, the consumption effect (driven by demand-side increasing returns to scale) (Radukić et al ., 2019) unveils. Put differently; , positive network externalities emerge once benefits or marginal utility are an increasing function of the number of given technology past adopters.…”

Section: Contextual Settings and Literature Reviewmentioning

confidence: 99%

Network effects—do they matter for digital technologies diffusion?

Anacka,

Lechman

2023

JOCM

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PurposeThe main research target of this paper is to capture the network effects using the case of mobile cellular telephony, identified in European telecommunication markets, and its determinants enhancing the process of digital technologies diffusion.Design/methodology/approachThis research relies on panel and dynamic panel regression analysis. The empirical sample covers 30 European countries, and the period for the analysis is set for 2000–2019.FindingsThis work contributes by examining the network effects identified on European telecommunication markets that drive the process of digital technologies diffusion, but it also extends the understanding of the latter by tracing major determinants of fast network expansion, e.g. prices of access to and use of, per capita income, urbanisation, population density, accessibility of fixed telephony infrastructure. The main findings support the initial supposition that the installed base strongly enhances diffusion of new technologies, while other factors, for example, prices, are not of prime importance.Research limitations/implicationsThis research has certain managerial implications. The unveiled network effects driving adoption of technological innovations constitute a significant determinant of implementation of differentiation strategy by telecommunication companies. Due to network effects consumers' propensity to join the network is valued higher than the prices of services offered, which is crucial not only from the perspective of the company's pricing strategy but also enables telecommunication companies to introduce to the market new products and/or services concentrating on increasing its quality and usability rather than future prices.Originality/valueThis is the first work that empirically verifies the intercompanies and interpersonal diffusion of cellular telephony, hypothesising that this process relies on unique network effects.

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“…Examples of the use of big data in telecommunications are described in detail in (Goworek, 2021), where the author substantiates the strategies of operators that improve competitive positions in the market, attract a wide customer base using big data. Authors (Radukić et al, 2019) consider the effects of digital transformation in the telecommunications markets which are characterized by network externalities. Also, in the article present a methodological framework for measuring the information society.…”

Section: Literature Reviewmentioning

confidence: 99%

Forecasting the Behavior of Target Segments to Activate Advertising Tools: Case of Mobile Operator Vodafone Ukraine

et al. 2022

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Today, the use of machine learning technology in combination with the use of big data are topics that are actively discussed in business around the world. This topic has long gone beyond the information sphere, as it now applies to almost every sphere of life: economic, telecommunications, education, medicine, administration, and especially defense. Predicting customer behavior based on scoring models is in its infancy in Ukrainian companies, the main ones being the introduction of artificial intelligence technologies and machine learning, which will be the leading catalyst that will facilitate decision-making in business in the nearest future. The aim of the study is to develop a scoring model that predicts the behavior of target segments, namely, updating their activity to activate advertising tools. To achieve the goal of the work a set of research methods was used: dialectical – to reveal the theoretical foundations of models and types of forecasting models; analytical – in the study of the functioning of the environment SAS, Anaconda; optimization methods – to choose the best model and generate features. Scientific novelty and theoretical significance lie in the development of a scoring model for predicting the activity of subscribers of the telecommunications company “VF Ukraine”, on the basis of which marketing campaigns are conducted. With the help of the built-in scoring model, the company “VF Ukraine” can target its campaigns to retain subscribers. The marketing directorate of the enterprise can choose the TOP-20 or TOP-30 of the most prone subscribers to non-resumption of activity, i.e., tend to switch to other mobile operators, and hold promotions for them – providing additional gifts and bonuses, money to mobile account.

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Effects of Digital Transformation and Network Externalities in the Telecommunication Markets

Cited by 10 publications

References 15 publications

Network Externality as a Mediator on Business Growth:

Network Externality as a Mediator on Business Growth:

Network effects—do they matter for digital technologies diffusion?

Forecasting the Behavior of Target Segments to Activate Advertising Tools: Case of Mobile Operator Vodafone Ukraine

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