Positive and negative feedback effects in competition for dominance of network business systems

Item Type Journal paper
Abstract

This paper extends the existing research on the interplay of positive and negative feedback dynamics in the competition for business system dominance. By building on an analysis of the digital television launch in the United Kingdom, we find that the expectation of network externalities intensifies competition causing strong negative feedback effects to emerge. Actions aimed at improving one's position are systematically imitated and pre-emptied. Pressure builds up in the business system, and only when the weakest firms exit, the positive feedback effects are unleashed in their full magnitude. Our findings contribute to an improved understanding of institutional dynamics in new technology introduction.

Authors Sillanpää, Antti & Laamanen, Tomi
Journal or Publication Title Research Policy
Language English
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date 1 June 2009
Publisher Elsevier
Place of Publication Amsterdam
Volume 38
Number 5
Page Range 871-884
Number of Pages 14
ISSN 0048-7333
ISSN-Digital 1873-7625
Publisher DOI 10.1016/j.respol.2009.01.001
Depositing User Prof. Dr. Tomi Laamanen
Date Deposited 25 Jan 2013 15:39
Last Modified 23 Aug 2016 11:15
URI: https://www.alexandria.unisg.ch/publications/219935

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Citation

Sillanpää, Antti & Laamanen, Tomi (2009) Positive and negative feedback effects in competition for dominance of network business systems. Research Policy, 38 (5). 871-884. ISSN 0048-7333

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https://www.alexandria.unisg.ch/id/eprint/219935
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