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The Late Take-off Phenomenon in the Diffusion of Telecommunication Services : Focused on the Fax Markets  

임병락 (한국정보통신대학원대학교(ICU) 경영학부)
최문기 (한국정보통신대학원대학교(ICU) 경영학부)
박명철 (한국정보통신대학원대학교(ICU) 경영학부)
Publication Information
Journal of the Korean Operations Research and Management Science Society / v.27, no.2, 2002 , pp. 81-96 More about this Journal
Abstract
Telecommunication services are distinctive in that their adoptions are influenced by network effect resulting in 'the late take-off phenomenon' and the 'critical mass' problem. In this paper we examined, so called, 'the late take-off phenomenon' in the diffusion process of telecommunication services. We compared the parameters of the diffusion process of consumer durables with those of fax services in the US and Korea. By analyzing the parameters of a new diffusion model based on the threshold model proposed by Markus, we found that 'the late take-off phenomenon' resulted from the low heterogeneity of the threshold distribution for the potential adopters. A simulation approach was proposed for the theoretical implication of the 'critical mass' problem in the start-up telecommunications services.
Keywords
Network Effect; Diffusion of Innovation; Telecommunication Services; Critical Mass;
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