Abstract
This research holds that extant theory on real options has several limitations with regard to strategic initiatives in markets influenced by network effects. In addressing these limitations, the authors argue that markets with strong network effects tend to enhance both growth and deferral options. Furthermore, the extent to which growth and deferral options affect market entry in these settings is conditioned by both the strength of network effects (i.e., network intensity) and the presence of a dominant design in the market. Implications for real options theory in the context of network effects and for firms considering entry into markets influenced by network effects are offered and discussed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.