• Journal of Information Technology Applications and Management
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• v.9 no.3
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• pp.97-111
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• 2002

This paper attempts to provide an overview of relationship between the characteristics of the network and competitive strategies. We review the theoretical background of the efficiency of network, which Is very important for the network-based industries. Network externality, positive feedback effects, bandwagon effects, economies of scale, economies of scope in network-base businesses are reviewed. Various network situations, including interconnection, and strategies are also discussed. In this purpose, simple but meaningful examples and cases are used to show the economic goals and means of network competition strategies. We try to link network strategies to the generic strategies and coopetition suggested by Porter and by Brandenburger and Nalebuff respectively. Since this study is an exploratory research, further studies on more complex network situation in the real work can be executed with taking advantage of this effort.

• Proceedings of the Technology Innovation Conference
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• 2003.02a
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• pp.63-77
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• 2003

In this paper, we investigate the co-movements of the real GDP cycle and the telecommunications service expenditure cycle over 1980 through 2000 in Korea. We used several appropriate statistical tools to characterize and to compare the co-movements between the two aforementioned variables. The statistics presented in this paper are common, easy to Interpret and capture important visual, descriptive information and the dynamics of data that would be lost if one focused only on the unconditional correlation coefficients of de-trended data. This paper examines four possible characteristics for the co-movements of real GDP and telecommunications service expenditure in Korea. The first is that in low frequency, the cyclical movements in telecommunications service expenditure are very similar to the cyclical movements in real GDP, The second is that in the high frequency, the estimated stationary cyclical telecommunications service expenditure is not closely related to the estimated stationary cyclical real GDP. Third, according to co-spectra analysis, the strong relationships between the variables are found in the mid-term frequency and as such this empirical finding has important implications for telecommunications policy and telecommunications service implementation strategies. Finally, in the short-term period, our empirical results support telecommunications network theories such as path dependence properties, lock-in, positive feedback externality, and network externality.

• Human Ecology Research
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• v.57 no.1
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• pp.1-13
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• 2019

Internet-based financial services are being increasingly integrated into consumers' daily lives. Internet-only banks have emerged as a powerful tool accelerating financial inclusion. This study investigates the satisfaction and continuous use intention predictors for Internet-only banks. We employed an extended post-acceptance model and used six antecedent factors that included perceived usefulness, perceived ease of use, privacy risk, functional risk, subjective norms, and network externality. All 351 participants used Internet-only banks and were 20-40 years of age. A self-administration online survey was conducted. SPSS 23.0 analyzed the frequency, description, and multiple regression analysis. The results of current study are as follows. The education, perceived usefulness, perceived ease of use, and network externality positively influenced the satisfaction of Internet-only banks. Privacy risk negatively influenced satisfaction with Internet-only banks. Perceived ease of use, subjective norm, network externality, and satisfaction positively influenced the continuous use intention of Internet-only banks. The results of our study provide a better explanation of important factors that could enhance the understanding of satisfaction and continuous use intention for Internet-only banks. Furthermore, this study extends the antecedent variables to the knowledge of financial services and enlarges the understanding of users' post-adoption behaviors.

• Journal of Korea Society of Digital Industry and Information Management
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• v.19 no.2
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• pp.147-160
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• 2023

Unlike other currencies, cryptocurrency is not a currency used for general transactions, but is currently applied to various investment assets and its scope is expanding. The purpose of this study is to the effect of personal characteristics on investment intention. As a theoretical background, it was verified by applying the Extended Technical Acceptance Model (ETAM). self-confidence propensity, bandwagon propensity, risk tolerance propensity, network externality, attitude, and Investment intention were composed of variables. The research method collected data from 871 people who had experience in cryptocurrency investment through a survey and analyzed it after excluding the data of 71 people who were judged to be inappropriate. The structural equation modeling method using AMOS was used. As a result of this paper, five hypotheses were accepted as statistically significant. This study concluded that self-confidence propensity, bandwagon propensity, risk tolerance propensity, network externality, and attitude had statistically significant effects on Investment intention. In this respect, this study will be able to provide useful information for cryptocurrency research.

• Korean Management Science Review
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• v.26 no.3
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• pp.169-184
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• 2009

Recently, mobile telecommunication businesses contend with each other to expand their customer base by using aggressive marketing strategies. In order to determine if there strategies are effective, customer's switching behavior needs to be studied. This study identifies and analyzes direct, indirect factors that may customer switching behavior : attractiveness of alternatives, network externality, and switching cost. Results reveals that attractiveness of alternatives, network externalities have a direct impact on customer switching behavior. These two factors also have moderating effects on customer switching behavior but the switching cost does not In short, network externalities and alternatives strategically determine the success of 3.5G service. In this regard, mobile business should improve their own attractiveness of alternatives by developing specialized service in 3.5G service.

• Journal of the Korean Operations Research and Management Science Society
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• v.35 no.4
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• pp.55-79
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• 2010

This study deals with a model for platform competition in a two-sided market. We suppose there are both direct and indirect network externalities between suppliers and users of each platform. Moreover, we suppose that both users and suppliers are distributed in their relative affinity for each platform type. That is, each user [supplier] has his/her own preferential position toward each platform, and users [suppliers] are horizontally differentiated over [0, 1]. And for analytical tractability, some parameters like direct and indirect network externalities are the same across the markets. Given the parameters and the pricing profile, users and suppliers conduct subscription game, where participants select the platform that gives them the highest payoffs. This game proceeds according to a replicator dynamics of the evolutionary game, which is simplified by properly defining gains from participant's strategy in the subscription game. We find that depending on the strength of these network effects, there might either be multiple stable equilibria, at which users and suppliers distribute across both platforms, or one unstable interior equilibrium corresponding to the market tipping in favor of either platform. In both cases, we also consider the pricing power of competing platform providers under the framework of the Stackelberg game. In particular, our study examines the possible effects of the type of competition between platform providers, which may constrain the equilibrium selection in the subscription game.

• Journal of Information Technology Services
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• v.10 no.2
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• pp.75-94
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• 2011

The industrial ecosystem around the Internet services has been evolving since the Internet was first introduced. The Net Neutrality issue best represents the process of the evolution and presents an inevitable challenge that the industry should overcome. This paper deals with this structural change with the Two-Sided Market framework and provides a System Dynamics(SD) model to evaluate the economic implications of the net neutrality policy. In particular, our approach analyzes the policy impacts when two competing platforms (network providers) play a role of the platform in a typical two-sided market, which connects Content Providers(CPs) with users. Previous studies show that the indirect network externality between these two markets makes the entire system tip to one platform. When the multi-homing in the CP market is allowed as in our model, however, their argument may lose its validity. To examine the system behavior, conducted here is SD simulations of our model. The simulation results show that co-existence of the competing platforms persists with the network effects over a certain threshold. The net neutrality policy seems to lower the threshold based on our experimental outcomes.

• Management Science and Financial Engineering
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• v.16 no.2
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• pp.67-80
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• 2010

This study is focused on instant messaging service (IMS) providers' efforts to maintain a steadfast group of consumers who are willing to continuously use one service without switching to another. Various factors, carefully selected to reflect the unique features of instant messaging, were tested to verify their relationship with consumer loyalty. The results suggest that consumer loyalty of IMS users is most significantly affected by trust and perceived reputation a consumer has on the provider of IMS. Network externality, or the size and proximity of relationships formed through an IMS, also proves to have effect on consumer loyalty. Consumer loyalty in IMS users of different age or different internet usage is affected differently by each factor.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1999.10a
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• pp.193-193
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• 1999

• Information Systems Review
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• v.15 no.1
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• pp.105-122
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• 2013

Given the proliferation of social network services, it has become important to understand its user's continued use behavior. As users' privacy concerns in SNS have been identified as a critical barrier against forming this continued intention, many studies have focused on inducing continued intention by mitigating privacy concerns. However, this paper suggests to approach users' continued intention not only from the perspective of mitigating privacy concerns but also from the perspective of increasing potential benefits. Under the theoretical framework of privacy calculus model, we conducted cross sectional survey on 150 Facebook and 150 KakaoTalk users. The result suggests that trust mediates the relationships between privacy concerns and continued intention and between network externality and continued intention, and the influence of support for network formation on continued intention. The effect of network externality on continued intention, however, is not significant among Facebook users while it is significant among KakaoTalk users.