Network Externalities and Technology Use: A Quantitative Analysis of Intraorganizational Blogs

Wattal, Sunil; Racherla, Pradeep; Mandviwalla, Munir

doi:10.2753/mis0742-1222270107

Cited by 118 publications

(52 citation statements)

References 53 publications

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“…Efimova and Grudin [17] examined the use of blogs as personal communication and knowledge management tools within Microsoft and identified the benefits to both individuals and organizations. In a recent paper, Wattal et al [18] examined the role of network externalities on the use of blogs in an organization and showed that such usage within an individual's network is associated with an increase in one's own usage. Furthermore, they also found that network effects are stronger for younger generations and women.…”

Section: Adoption and Use Of Internal Social Media Applicationsmentioning

confidence: 99%

Adoption and Use of Social Media in Small and Medium-Sized Enterprises

Meske

Stieglitz

2013

Lecture Notes in Business Information Processing

117

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Abstract. In recent years, social media have been increasingly adopted in enterprises. Enterprises use social media as an additional way to get in contact with their customers and support internal communication and collaboration. However, little research is devoted to the adoption and internal usage of social media in small and medium-sized enterprises (SMEs), which are of high social and economic importance. The purpose of this paper is to examine the adoption, usage, and benefits of social media in SMEs as well as potential concerns that may prevent a wider adoption of social media in SMEs. Therefore, a survey of decision-makers in German SMEs was conducted. Findings based on 190 responses indicate that SMEs started to use internal social media (e.g., wikis, blogs) in order to support collaboration among employees and to improve knowledge management. However, SMEs still face problems to manage adoption and to identify relevant business values. Based on our results, we derive several implications for SMEs, in particular how to overcome the obstacles to a wider adoption of social media.

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Section: Adoption and Use Of Internal Social Media Applicationsmentioning

confidence: 99%

Adoption and Use of Social Media in Small and Medium-Sized Enterprises

Meske

Stieglitz

2013

Lecture Notes in Business Information Processing

117

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“…Having a large network of users that also employ the same technology provides external value -positive network externality -to the firm. These network externalities are particularly prevalent in software, apps, social media and communication networks (Brynjolfsson and Kemerer, 1996;Gallaugher and Wang, 2002;Strader et al, 2007;Tucker, 2008;Wattal et al, 2010;Zhou et al, 2015). Infrastructure networks such as ATM machine networks and electronic data interchange systems (Kauffman et al, 2000) also exhibit network externalities.…”

Section: Network Externalities and Technology Adoptionmentioning

confidence: 99%

“…Brynjolfsson and Kemerer (1996) empirically demonstrate the presence of network externalities in the spreadsheet software market, while Wang (1999, 2002) demonstrate the degree of payoff externalities in the browser/server software market. More recently, the issue of network externalities has been also considered in social media and communication networks (Wattal et al, 2010), e-mail and internet messaging (Strader et al, 2007;Zhou et al, 2015), as well as video-messaging (Tucker, 2008).…”

Section: Evidence On Switching Costs In Information Technology Investmentioning

confidence: 99%

On the Role of Switching Costs and Decision Reversibility in Information Technology Adoption and Investment

Chulkov

2017

JISTEM

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Managerial decisions on the adoption of innovative technologies by a firm are made under conditions of uncertainty and must account for network externalities that imply the benefit of a technology is received not only from its intrinsic payoff, but also from the size of the network of other adopters. The theoretical model presented in this study demonstrates that for firms evaluating information technology investment with network effects key determinants of the technology selection pattern are adoption reversibility and switching costs. If switching costs are sufficiently high to make technology adoption irreversible then safer established technologies have an advantage as choosing a riskier untested technology opens the firm to the risk of being stranded without a network of followers. With lower switching costs, the technology adoption decision is reversible which provides an advantage to riskier untested technologies. A discussion of empirical evidence on adoption patterns in information technology provides application for the theoretical model.

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“…See for example several recent papers in the Journal of Management Information Systems such as [51] in the context of positive influence on technology use, [30] in the context of diffusion of software, [14] in the context of review creation, [19] in context of co-creation and cooperation between consumers, and [5] in the context of music sales in presence of piracy. 2 Representative papers in this literature include [33] which suggests positive and negative effect of self-selection on consumer reviews, [27] which analyzes role of network structure on information diffusion when bidding for secret reserve price auctions, [10,49] which analyze the role of influencers, imitators, and opponents on diffusion of innovation, [15] which compares various diffusion models to estimate the effect of consumer reviews on box office sales, and [21] which discusses the consumer's valuation of products in the presence of alternate secondary markets.…”

Section: Estimation Challengesmentioning

confidence: 99%