• 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