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Effects of Network Externality on Perceived Value and Adoption of High-tech Products : Focusing on Convergence Products
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  • Journal title : The Journal of Information Systems
  • Volume 24, Issue 4,  2015, pp.21-42
  • Publisher : The Korea Association of Information Systems
  • DOI : 10.5859/KAIS.2015.24.4.21
 Title & Authors
Effects of Network Externality on Perceived Value and Adoption of High-tech Products : Focusing on Convergence Products
Park, Kyung Ja;
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Purpose The high-technology market shows characteristics of a highly interdependent network market in both supply-side and demand-side, compared to other markets. Particularly, for convergence products, connectivity with related elements, as well as characteristics of innovation itself, is relatively important to the extent that they combine functions provided by several devices into a single device. Therefore, this study aims to identify whether network externality exists in value and adoption of a convergence product and discover a source of network externality, if any. Design/methodology/approach: Through a preceding research analysis and a literature review, `social influence` and `network size` have been drawn as direct network elements. On the other hand, general (comprehensive) concept compatibilities including `intra-technology compatibility`, `inter-technology compatibility` and `complementary-technology compatibility` are regarded as indirect network elements. Findings: Major findings are as followed;- First, it is shown that the factors influencing on perceived value of a convergence products are `social influence` and `network size` as the direct network elements and `complementary-compatibility` among indirect network elements. Second, it is also found that `intra-technology compatibility`, `inter-technology compatibility`, `complementary-compatibility` and `perceived value` have significant effects on adoption of a convergence product. Particularly, it is known that `complementary-compatibility` is an important source of network externality as it plays a decisive role in value judgment and has significant effects on perceived value. It is worthwhile to notice that this study comprehensively explains effects of network on high-tech products by structuring comparability as a multi-dimensional concept, as well as direct network elements.
High-Tech Products;Adoption;Network Externality;Perceived Value;Convergence;
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