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How High-Technology Start-Up Firms May Overcome Direct and Indirect Network Externalities

How High-Technology Start-Up Firms May Overcome Direct and Indirect Network Externalities

Mark Pruett, Hun Lee, Ji-Ren Lee, Donald O’Neal
Copyright: © 2003 |Volume: 1 |Issue: 1 |Pages: 13
ISSN: 1539-3062|EISSN: 1539-3054|ISSN: 1539-3062|EISBN13: 9781615203918|EISSN: 1539-3054|DOI: 10.4018/jitsr.2003010103
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MLA

Pruett, Mark, et al. "How High-Technology Start-Up Firms May Overcome Direct and Indirect Network Externalities." IJITSR vol.1, no.1 2003: pp.33-45. http://doi.org/10.4018/jitsr.2003010103

APA

Pruett, M., Lee, H., Lee, J., & O’Neal, D. (2003). How High-Technology Start-Up Firms May Overcome Direct and Indirect Network Externalities. International Journal of IT Standards and Standardization Research (IJITSR), 1(1), 33-45. http://doi.org/10.4018/jitsr.2003010103

Chicago

Pruett, Mark, et al. "How High-Technology Start-Up Firms May Overcome Direct and Indirect Network Externalities," International Journal of IT Standards and Standardization Research (IJITSR) 1, no.1: 33-45. http://doi.org/10.4018/jitsr.2003010103

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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.

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