Network effects in mobile telecommunications markets: A comparative analysis of consumers' preferences in five Latin American countries

Aguilar, Diego; Agüero, Aileen; Barrantes, Roxana

doi:10.1016/j.telpol.2020.101972

Cited by 9 publications

(14 citation statements)

References 15 publications

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“…The studies examining the network effects regarding the macro-process of technology diffusion are rarely studied. Several examples of such evidence may be traced in Kiiski and Pohjola (2002), Arroyo-Barrig€ uete et al (2010), Grajek (2010), Grajek and Kretschmer (2012), Lechman (2017Lechman ( , 2018Lechman ( and 2019 or Aguilar et al (2020). The last cited study by Aguilar et al (2020) links the macro-and micro-perspectives.…”

Section: Network Effectsmentioning

confidence: 99%

“…Several examples of such evidence may be traced in Kiiski and Pohjola (2002), Arroyo-Barrig€ uete et al (2010), Grajek (2010), Grajek and Kretschmer (2012), Lechman (2017Lechman ( , 2018Lechman ( and 2019 or Aguilar et al (2020). The last cited study by Aguilar et al (2020) links the macro-and micro-perspectives. This work shows the evidence that on the macro -level, the size of the network itself is seminal for its further growth (see similar claims in Baraldi (2012) regarding the role of "installed base"), meanwhile-on the micro-level-the company's pricing strategy determines consumers' choices.…”

Section: Network Effectsmentioning

confidence: 99%

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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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Section: Network Effectsmentioning

confidence: 99%

Section: Network Effectsmentioning

confidence: 99%

Network effects—do they matter for digital technologies diffusion?

Anacka,

Lechman

2023

JOCM

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“…There has been a growing debate on the contribution of internet access to economic growth as well as allowing information flow to the economy in all respects (Aguilar et al, 2020). A review of comprehensive literature on the most recent studies on internet access and economic growth is presented in this strand of literature(see Gómez-Barroso and Marbán-Flores, 2020b;.…”

Section: Empirical Literaturementioning

confidence: 99%

The asymmetric effect of internet access on economic growth in sub-Saharan Africa

Abdulqadir¹,

Asongu

2022

Economic Analysis and Policy

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This article investigates the asymmetric effect of internet access (index of the internet) on economic growth in 42 sub-Saharan African (SSA) countries over the period 2008-2018.The estimation procedure is obtained following a dynamic panel threshold regression technique via 1000 bootstrap replications and the 400 grids search developed by Hansen (1996Hansen ( , 1999Hansen ( , 2000. The investigation first explores the presence of inflection points in the relationship between internet access and economic growth through the application of Hansen's threshold models. The finding from the nonlinearity threshold model revealed a significant internet threshold-effect of 3.55 percent for growth. The article also examines the linear short-run effect of internet access on economic growth while controlling for the effects of private sector credit, trade openness, government regulation, and tariff regimes. The marginal effect of internet access is evaluated at the minimum, and the maximum levels of government regulation and tariffs regime are positive. On the other hand, the minimum and maximum levels of private sector credit and trade openness are negative via the interaction terms. The article advances the literature by its nonlinear transformation of the relevance of internet access on economic growth by exploring interactive mechanisms of internet access versus financial resource, internet access versus trade, internet access versus government regulation, and internet access versus the tariff regimes from end-user subscriptions. In policy terms, the statistical significance of the joint impact of government regulations and tariff regimes is relevant in the operation of the telecommunication industry in SSA countries.

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“…Network effects, referring to the value stemming from a network's size, are a vital factor in network industries (Aguilar et al, 2020). As a measure of social influence.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This is supported by previous literature. For example, it is found that customer loyalty is related to personal loyalty (Wang et al, 2015), association with a consumption community (Raïes et al, 2015) and connections with personal contacts (i.e., local network effects) (Aguilar et al, 2020). This phenomenon might be even more prominent in network industries such as telecommunications as the size of the user base tends to drive customer behavior (Fuentelsaz et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

Customer retention: Exploring the effects of relationship layers and perceived indifference

Quach

2021

J of Consumer Behaviour

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Informed by the social orientation of loyalty, the study extends the current body of knowledge by integrating multiple relationship layers (i.e., personal loyalty, relationship with online consumption communities and local network effects) as antecedents of various states of firm-customer interactions including habitual loyalty, fanaticism, and retaliation. Data collection was carried out in the mobile telecommunications market using a paper-based survey. A total of 600 completed survey responses were collected. The respondents were 18 or older and had been mobile service users for at least 1 year. Overall, it was found that personal loyalty, relationship with online consumption communities and local network effects were significant antecedents of fanaticism. Personal loyalty and local network effects can reinforce habitual loyalty whereas the relationship with online consumption communities can increase retaliation. The role of relationship with online consumption communities becomes more significant as customers perceive a higher level of indifference among service providers. Further, local network effects were significantly and negatively related to retaliation. The findings of this study provide important theoretical and practical implications for academics and practitioners alike, especially in the contractual, network industries.

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Network effects in mobile telecommunications markets: A comparative analysis of consumers' preferences in five Latin American countries

Cited by 9 publications

References 15 publications

Network effects—do they matter for digital technologies diffusion?

Network effects—do they matter for digital technologies diffusion?

The asymmetric effect of internet access on economic growth in sub-Saharan Africa

Customer retention: Exploring the effects of relationship layers and perceived indifference

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