Abstract
In what condition, the challengers of the market would gain the support of the very incumbents they disrupt. This seemingly impossible logic often occurs in reality. By establishing a model of technological competition with asymmetric characteristics under network externalities, we provide a correlation possibility to serve as a warning for incumbent enterprises. We find that under the joint influence of technological competition and network externalities, a dangerous area would be created. In which, the network externality would paralyze the judgment of the enterprise on the profit and lead to the wrong decision of the enterprise in the face of technology competition. Moreover, this paper believes that, enterprises should focus on the changes in the overall value of the market due to the introduction of technology, rather than making the related decisions based on their own profit demand. Our research has contributed to the studies of both the interpretation of the innovator's dilemma and the direction of risk research considering network externalities.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call