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How big data and analytics reshape the wearable device market – the context of e-health

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  • Jing Wu
  • He Li
  • Zhangxi Lin
  • Khim-Yong Goh

Abstract

The wearable device can be a key link between health care and big data and analytics (BDA). The benefits of BDA in health care have been widely acknowledged, but the uncertainty of the implementation of BDA has led some firms to hesitate in adopting this technology. In this research, we are keen to answer the key questions of whether the wearable device firms would adopt the BDA strategy, and how much effort they would put into it. We propose a competition model between the wearable device firms with and without BDA strategies, and consider the consumer’s preference towards BDA and network effects. Our model demonstrates that the investment on BDA directly affects the firm’s equilibrium price, market share and profit and at the same time, this strategy also affects the rival’s performances. When the firm with BDA strategy adopts different competition strategy: conservative or expansive, the outcomes of market are different. We also find that different market structures, fully covered and partially covered, have different impacts on the firms’ competition when the consumers have heterogeneous preference on BDA strategy.

Suggested Citation

  • Jing Wu & He Li & Zhangxi Lin & Khim-Yong Goh, 2017. "How big data and analytics reshape the wearable device market – the context of e-health," International Journal of Production Research, Taylor & Francis Journals, vol. 55(17), pages 5168-5182, September.
  • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:17:p:5168-5182
    DOI: 10.1080/00207543.2015.1059521
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    Cited by:

    1. Donghui Yang & Yan Wang & Shue Mei, 2021. "How to balance online healthcare platforms and offline systems? A supply chain management perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 502-515, March.
    2. Benzidia, Smail & Makaoui, Naouel & Bentahar, Omar, 2021. "The impact of big data analytics and artificial intelligence on green supply chain process integration and hospital environmental performance," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    3. Seok Chan Jeong & Beom-Jin Choi, 2022. "Moderating Effects of Consumers’ Personal Innovativeness on the Adoption and Purchase Intention of Wearable Devices," SAGE Open, , vol. 12(4), pages 21582440221, November.
    4. Chen, Yi & Ding, Shuai & Zheng, Handong & Zhang, Youtao & Yang, Shanlin, 2018. "Exploring diffusion strategies for mHealth promotion using evolutionary game model," Applied Mathematics and Computation, Elsevier, vol. 336(C), pages 148-161.
    5. Rajesh Chidananda Reddy & Biplab Bhattacharjee & Debasisha Mishra & Anandadeep Mandal, 2022. "A systematic literature review towards a conceptual framework for enablers and barriers of an enterprise data science strategy," Information Systems and e-Business Management, Springer, vol. 20(1), pages 223-255, March.

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