DocumentCode
1762840
Title
Impact of Interorganizational Relationships on Technology Diffusion: An Agent-Based Simulation Modeling Approach
Author
Zaffar, Muhammad Adeel ; Kumar, R. Lokesh ; Kexin Zhao
Author_Institution
Lahore Univ. of Manage. Sci., Lahore, Pakistan
Volume
61
Issue
1
fYear
2014
fDate
Feb. 2014
Firstpage
68
Lastpage
79
Abstract
Interorganizational relationships are an integral part of an organization´s decision-making process. The reason is that an organization´s decision affects and is affected by the decision of its partners, particularly in the context of technology adoption and diffusion. Therefore, it is important to explore the role of this social network of organizations in shaping the process of technology diffusion. We conduct a series of experiments using the agent-based simulation modeling technique to identify strategically located firms in a network that can significantly influence the process of software diffusion. Our findings suggest that: 1) structural location of organizations does significantly influence the process of diffusion; and 2) the criteria for identifying strategically located firms depend on contextual factors, such as network topology, network density, and interoperability costs. To illustrate the practical use of these results, we propose a “network-aware” pricing strategy that takes advantage of information regarding organizational social networks. We illustrate that contrary to prevalent practice in the enterprise software market, where firms are generally targeted on the basis of their size, network-aware pricing has the potential to facilitate the development of a more effective market penetration strategy.
Keywords
decision making; multi-agent systems; network theory (graphs); organisational aspects; simulation; software development management; agent-based simulation modeling; enterprise software market; interoperability costs; interorganizational relationships; market penetration strategy; network density; network topology; network-aware pricing; network-aware pricing strategy; organization decision-making process; social network; software diffusion process; technology adoption; technology diffusion; Agent-based modeling; organizational decision processes; simulation; social network analysis (SNA); software pricing;
fLanguage
English
Journal_Title
Engineering Management, IEEE Transactions on
Publisher
ieee
ISSN
0018-9391
Type
jour
DOI
10.1109/TEM.2013.2259495
Filename
6529116
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