David P. McIntyre

Strategy in Network Industries: A Review and Research Agenda

This article reviews extant theoretical perspectives and empirical literature at the nexus of network effects and strategy. Building on these insights, it offers a research framework that focuses on three primary avenues: the strategic drivers of network intensity, approaches to assess variations in network intensity, and effective strategies for leveraging network intensity. In doing so, the study widens the perspective of the role of strategy in network industries and offers directions for future research.

Market Entry in the Presence of Network Effects: A Real Options Perspective

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.