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Are network effects really all about size? The role of structure and conduct

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  • Allan Afuah

Abstract

Rooted in neoclassical economics, network effects research has revolved around size, arguing that the more users a network has, the more valuable that network will be to each user. I argue that a network's structure (feasibility of transactions, centrality of members, structural holes, network ties, the number of roles each member plays) and its conduct (opportunistic behavior, reputation signaling, perceptions of trust) also have significant impacts on a network's value to users and to network providers. Network research that neglects structure and conduct and focuses only on size can lead to wrong strategies or a misleading research agenda. Copyright © 2012 John Wiley & Sons, Ltd.

Suggested Citation

  • Allan Afuah, 2013. "Are network effects really all about size? The role of structure and conduct," Strategic Management Journal, Wiley Blackwell, vol. 34(3), pages 257-273, March.
    • Handle: RePEc:bla:stratm:v:34:y:2013:i:3:p:257-273
    DOI: 10.1002/smj.2013
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    Cited by:

    1. Hemant Bhargava & Antoine Dubus & David Ronayne & Shiva Shekhar, 2026. "The Strategic Value of Data Sharing in Interdependent Markets," Management Science, INFORMS, vol. 72(2), pages 1472-1488, February.
    2. Hsu, Wen-yi, 2025. "Qualitative analysis of structural holes in emerging media industries: Evidence from Taiwan’s Over-The-Top Industry," Telecommunications Policy, Elsevier, vol. 49(6).
    3. Jinyan Wen & Donghua Tan & Honglue Wang & Yanxiao Gao, 2025. "How Do Alliance Networks Affect Firms’ Capability of Influencing Technological Standardization? Configuration Analysis Based on the TOE Framework," Sustainability, MDPI, vol. 17(21), pages 1-21, October.

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