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The determinants of network effects: Evidence from online games business ecosystems

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  • Rong, Ke
  • Ren, Qun
  • Shi, Xianwei

Abstract

This paper explores the determinants of network effects of the two-sided online games market. We have used the Massively Multiplayer Online Role-Playing Games (MMORPG) industry as the empirical context to explore these network effect determinants. With an inductive, qualitative case study on the MMORPG ecosystem, we have developed an integrated framework combining network structural characteristics (strong tie communication and weak tie creation) and network functioning characteristics (value-informed pricing and accessory diversification), which are the key determinants of network effects. Furthermore, business ecosystem characteristics, such as internal and external resource support, will moderate and strengthen such relationships. This article not only contributes to the determinants of network effect theories, but also has implications for the practitioners in the MMORPG industry.

Suggested Citation

  • Rong, Ke & Ren, Qun & Shi, Xianwei, 2018. "The determinants of network effects: Evidence from online games business ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 45-60.
    • Handle: RePEc:eee:tefoso:v:134:y:2018:i:c:p:45-60
    DOI: 10.1016/j.techfore.2018.05.007
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    Cited by:

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    5. Lantano, Francesco & Petruzzelli, Antonio Messeni & Panniello, Umberto, 2022. "Business model innovation in video-game consoles to face the threats of mobile gaming: Evidence from the case of Sony PlayStation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    6. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Thrassou, Alkis & Vrontis, Demetris, 2022. "Social network games (SNGs) addiction: Psychological dimensions and impacts on life quality and society," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    7. Rong, Ke & Xiao, Fei & Zhang, Xiaoyu & Wang, Jingjing, 2019. "Platform strategies and user stickiness in the online video industry," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 249-259.
    8. Fei Li & Yang Zhao & Jaime Ortiz & Yan Chen, 2023. "How Does Digital Technology Innovation Affect the Internationalization Performance of Chinese Enterprises? The Moderating Effect of Sustainability Readiness," Sustainability, MDPI, vol. 15(14), pages 1-25, July.
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    11. Sánchez-Cartas, J. Manuel, 2022. "Welfare and fairness in free-to-play video games," Technological Forecasting and Social Change, Elsevier, vol. 180(C).

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