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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
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Nonis-Hudson-Hunt (p. 95-106) 


Network Effect as a Competitive Edge: What Have We Learnt From the Literature?

Author(s): Yu Peng Lin, Ablaye Camara

Citation: Yu Peng Lin, Ablaye Camara, (2020) "Network Effect as a Competitive Edge: What Have We Learnt From the Literature?," Journal of Strategic Innovation and Sustainability, Vol. 15, Iss. 7, pp. 43-52

Article Type: Research paper

Publisher: North American Business Press


Network effect is defined as the value that an additional user of a product has on that product’s value to others. In an industry exhibiting network effect, firms need to consider the possible role of the network being the establishment of a competitive edge. In this review, our goal is to synthesize the broad literature on network effects, and we put forward the argument that, in practice, network effect has quietly become a key factor in forming a firm’s competing strategy. In the presence of positive network effects, consumers’ willingness to pay is an increasing function of the network size.