How High-Technology Start-Up Firms May Overcome Direct and Indirect Network Externalities
Journal
International Journal of IT Standards and Standardization Research (IJITSR)
Journal Volume
1
Journal Issue
1
Pages
33-45
Date Issued
2003
Author(s)
Abstract
This paper presents a conceptual model of strategic choice for high-technology start-up firms in the face of network externalities—the strength of the market’s preference for standardized technology. Our model suggests that the commercialization strategies followed by such a firm will depend on the type of network externalitites—direct versus indirect—as well as the degree of appropriability—the firm’s ability to retain the value of innovation. We offer a number of propositions generated by the model and discuss their implications. © 2003, IGI Global. All rights reserved.
Subjects
appropriability; high-technology start-ups; network externalities
SDGs
Type
journal article