Abstract
The purpose of this research is to explore variation in the influence of network
effects across competitive settings. Specifically, this study tests for significant
differences in the impact of a product’s installed base on its growth in an industry
influenced by network effects, application software. Variation in size-on-growth effects
across industry segments is conjectured to be a function of the network intensity,
or degree of consumer interdependence, of the segments. The results illustrate
significant variation in the magnitude of size-on-growth effects across segments,
consistent with the notion of network intensity. Implications for strategy in hightechnology
settings are discussed.
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