IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2024i63p12-33.html
   My bibliography  Save this article

The prospect of the theory of network effects for analyzing inter-o rganizational networks

Author

Listed:
  • Soloviev, I.

    (HSE University, Moscow, Russia)

  • Shaidullin, A.

    (HSE University, Moscow, Russia)

Abstract

The purpose of the study is to use the network effects theory for analyzing the growth of the utility of B2B networks on a contract basis. This work is motivated by researchers in this scientific to expand the theory of the network effects for industrial marketing with the help of interdisciplinary research, as well as the observed trends in Russian and international business to form networks and alliances. Most of the previous studies of industrial networks used monodisciplinary practices and was focused on qualitative analysis. Network effects studies were mostly focused on the study of B2C, B2B, and P2P platforms. However, industrial networks built on the basis of contracts are poorly covered even by now. The research methodology suggests the following step-by-step implementation: 1) analysis of the theoretical foundations of network effects and business networks; 2) adaptation of methods of network effects theory for the study of inter-organizational networks; 3) development of an approach to assessing the value of a partner and testing on the example of "Cisco". The results of the study: 1) the basics of integrating the theory of network effects and the network approach formed; 2) directions for future research proposed; 3) an approach to assessing the value of an added partner developed; 4) recommendations on the use of methodology for managing the portfolio of partners proposed.

Suggested Citation

  • Soloviev, I. & Shaidullin, A., 2024. "The prospect of the theory of network effects for analyzing inter-o rganizational networks," Journal of the New Economic Association, New Economic Association, vol. 63(2), pages 12-33.
    • Handle: RePEc:nea:journl:y:2024:i:63:p:12-33
    DOI: 10.31737/22212264_2024_2_12-33
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2024-63-12-33r.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31737/22212264_2024_2_12-33?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rabah Amir & Igor Evstigneev & Adriana Gama, 2021. "Oligopoly with network effects: firm-specific versus single network," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(3), pages 1203-1230, April.
    2. Byungjoon Yoo & Vidyanand Choudhary & Tridas Mukhopadhyay, 2007. "Electronic B2B Marketplaces with Different Ownership Structures," Management Science, INFORMS, vol. 53(6), pages 952-961, June.
    3. Ferretti, Marco & Guerini, Massimiliano & Panetti, Eva & Parmentola, Adele, 2022. "The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships," Technovation, Elsevier, vol. 111(C).
    4. Giulia Brancaccio & Myrto Kalouptsidi & Theodore Papageorgiou, 2020. "Geography, Transportation, and Endogenous Trade Costs," Econometrica, Econometric Society, vol. 88(2), pages 657-691, March.
    5. Moller, Kristian & Rajala, Arto & Svahn, Senja, 2005. "Strategic business nets--their type and management," Journal of Business Research, Elsevier, vol. 58(9), pages 1274-1284, September.
    6. Claudio Panico & Carmelo Cennamo, 2022. "User preferences and strategic interactions in platform ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 507-529, March.
    7. Afonso, Oscar & Magalhäes, Manuela, 2020. "How Powerful Are Network Effects? A Skill-Biased Technological Change Approach," Macroeconomic Dynamics, Cambridge University Press, vol. 24(4), pages 882-919, June.
    8. Wallbach, Sören & Coleman, Katrin & Elbert, Ralf & Benlian, Alexander, 2019. "Multi-sided platform diffusion in competitive B2B networks: Inhibiting factors and their impact on network effects," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 117236, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. Sören Wallbach & Katrin Coleman & Ralf Elbert & Alexander Benlian, 2019. "Multi-sided platform diffusion in competitive B2B networks: inhibiting factors and their impact on network effects," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 693-710, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maximilian Julius Krome & Ulrich Pidun, 2023. "Conceptualization of research themes and directions in business ecosystem strategies: a systematic literature review," Management Review Quarterly, Springer, vol. 73(2), pages 873-920, June.
    2. Ferdinand Thies & Sören Wallbach & Michael Wessel & Markus Besler & Alexander Benlian, 2022. "Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1691-1705, September.
    3. Matzner, Martin & Pauli, Tobias & Marx, Emanuel & Anke, Jürgen & Poeppelbuss, Jens & Fielt, Erwin & Gregor, Shirley & Sun, Ruonan & Hydle, Katja Maria & Aas, Tor Helge & Aanestad, Margunn & Gordijn, J, 2021. "Transitioning to Platform-based Services and Business Models in a B2B Environment," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(3), pages 143-162.
    4. Roger Clarke, 2022. "Research opportunities in the regulatory aspects of electronic markets," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(1), pages 179-200, March.
    5. Yuki Inoue & Takeshi Takenaka & Takami Kasasaku & Tadafumi Tamegai & Ryohei Arai, 2023. "How to design platform ecosystems by intrapreneurs: Implications from action design research on IoT-based platform," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-26, December.
    6. Stange, Inga, 2022. "What Drives the B2B Platform Economy? A Qualitative Examination of Current Trends, Success Factors, and the Road Ahead," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(1), pages 1-31.
    7. Tessmann, R. & Elbert, R., 2022. "Multi sided platforms in competitive B2B networks with varying governmental influence – a taxonomy of Port and Cargo Community System business models," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132320, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Erik Hartigh & Claire C.M. Stolwijk & J. Roland Ortt & L. Matthijs Punter, 2023. "Configurations of digital platforms for manufacturing: An analysis of seven cases according to platform functions and types," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-17, December.
    9. Shree, Deep & Kumar Singh, Rajesh & Paul, Justin & Hao, Andy & Xu, Shichun, 2021. "Digital platforms for business-to-business markets: A systematic review and future research agenda," Journal of Business Research, Elsevier, vol. 137(C), pages 354-365.
    10. Nizar Abdelkafi & Christina Raasch & Angela Roth & R. Srinivasan, 2019. "Multi-sided platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 553-559, December.
    11. Dhrithi Mahadevan & G. Shainesh, 2024. "Conceptualizing customer experience in multi-actor platforms," AMS Review, Springer;Academy of Marketing Science, vol. 14(1), pages 83-103, June.
    12. Ruben Tessmann & Ralf Elbert, 2022. "Multi-sided platforms in competitive B2B networks with varying governmental influence – a taxonomy of Port and Cargo Community System business models," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 829-872, June.
    13. Xinyi Lyu & Tiaojun Xiao & Jingquan Li, 2024. "Evolution of direct network effects: A perspective of market thickness of an online freight platform," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-16, December.
    14. Lehner, Roland, 2023. "Cross-Supply Chain Collaboration Platform for Pallet Management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 138753, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    15. Ruben Tessmann & Ralf Elbert, 2022. "A multilevel, multi-mode framework for standardization in digital B2B platform eco-systems in international cargo transportation—A multiple case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 1843-1875, December.
    16. Suguru Otani, 2024. "Industry Dynamics with Cartels: The Case of the Container Shipping Industry," Discussion Paper Series DP2024-28, Research Institute for Economics & Business Administration, Kobe University.
    17. Pablo D. Fajgelbaum & Edouard Schaal, 2020. "Optimal Transport Networks in Spatial Equilibrium," Econometrica, Econometric Society, vol. 88(4), pages 1411-1452, July.
    18. Kazadi, Kande & Lievens, Annouk & Mahr, Dominik, 2016. "Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders," Journal of Business Research, Elsevier, vol. 69(2), pages 525-540.
    19. Giulia Brancaccio & Myrto Kalouptsidi & Theodore Papageorgiou, 2023. "The impact of oil prices on world trade," Review of International Economics, Wiley Blackwell, vol. 31(2), pages 444-463, May.
    20. Tanja Lepistö & Tiina Mäkitalo-Keinonen & Tiina Valjakka, 0. "Opportunity recognition in a hub-governed network – insights from garage services," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.

    More about this item

    Keywords

    business network; inter-organizational network; network effects; B2B market; Metcalf's law;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2024:i:63:p:12-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.