Standard Diffusion in Growing Networks: Modeling Interaction Patterns

Daniel Fürstenau, Natalia Kliewer

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

Size matters for standardization efforts: Newly introduced, more efficient standards are often disadvantaged because they have smaller networks. Networks for commercial and technical collaboration - for instance in passenger transportation - however, suggest that network size is not all that matters. Network effect models should also account for specific interaction patterns and growth processes. Emerging islands of shared technologies may then be explained by close-knit, non-proportional interactions among members of alliances and the like. To test the effects of proportionality, degree of interaction, and preferentiality, we model standard diffusion in a growing network of organizations linked through different patterns of interaction. Extreme case analysis and agent-based simulation show that proportional and non-proportional interactions have different, non-monotonic effects on standardization outcomes. Proportional interactions-formed as a function of a growing network size - result in a path-dependent trajectory where an increasing number of links promote one standard's dominance. Non-proportional interactions, in contrast, limit network effects: Multi-standard persistence becomes more likely as new agents are less dependent on the total number of adopters in the network. We illustrate theoretical implications and planned next steps for assessing diffusion scenarios of a new standard in airline IT and distribution.

Original languageEnglish
Title of host publicationECIS 2014 Proceedings
EditorsMichel Avital, Jan Marco Leimeister, Ulrike Schultze
Number of pages10
Place of PublicationAtlanta, GA
PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
Publication date2014
Article number12
ISBN (Print)9780991556700
Publication statusPublished - 2014
Externally publishedYes
Event22nd European Conference on Information Systems, ECIS 2014: Digital Work, Digital Life - David Intercontinental Hotel, Tel Aviv, Israel
Duration: 9 Jun 201411 Jun 2014
Conference number: 22
http://ecis2014.eu/

Conference

Conference22nd European Conference on Information Systems, ECIS 2014
Number22
LocationDavid Intercontinental Hotel
CountryIsrael
CityTel Aviv
Period09/06/201411/06/2014
Internet address
SeriesProceedings of the European Conference on Information Systems
ISSN0000-0034

Keywords

  • Agent-based Models
  • Network Analysis
  • Network Effects
  • Path Dependence

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