Managing network effects in High-Tech Markets

Jean-Philippe Bonardi and Rodolphe Durand ()
Additional contact information
Jean-Philippe Bonardi: UWO - University of Western Ontario
Rodolphe Durand: EM - EMLyon Business School

Post-Print from HAL

Abstract: Many high-tech markets are characterized by network effects: situations where consumers make their decisions not simply based on the core product, but also on the quality and availability of its complements. These network effects enable the creation of a technological standard, which can lead to a strong competitive position for the core-product manufacturer. There is no guarantee, however, that this position can be sustained over time. Managers must therefore focus on further developments of the core product. the best way to stimulate further developments may be to reposition the core product in order to strengthen network effects. A three-phase framework can determine how to make an investment in the future generation of a product for which complements are crucial. First, a matrix is provided to evaluate whether the existing technology presents some untapped potential in terms of network effects; second, how to reposition the core product is analyzed; and third, some accompanying measures to manage this repositioning efficiently are suggested.

Date: 2003-11-01
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published in Academy of Management Executive, 2003, 17 (4), 40-53 p. ⟨10.5465/ame.2003.11851827⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02276694

DOI: 10.5465/ame.2003.11851827

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().