Difference between revisions of "Theory of Network Externalities"

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(Created page with "{{Sponsor Thumbs}} == '''Actor network theory''' == ---- == Acronym == ANT == Alternate name(s)== N/A == Main dependent construct(s)/factor(s)== N/A == Main independent cons...")
 
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== Acronym ==
 
== Acronym ==
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ANT
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N/A
 
== Alternate name(s)==
 
== Alternate name(s)==
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N/A
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Theory of Network Effects
 
== Main dependent construct(s)/factor(s)==
 
== Main dependent construct(s)/factor(s)==
 
N/A
 
N/A
 
== Main independent construct(s)/factor(s) ==
 
== Main independent construct(s)/factor(s) ==
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Key terms: actor, network, translation, problemization, OPP, interessement, enrollment, inscription, irreversibility
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== Concise description of theory ==
 
== Concise description of theory ==
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Actor-network theory, sometimes abbreviated to ANT, is a sociological theory developed by Bruno Latour, Michel Callon and John Law. It is distinguished from other network theories in that an actor-network contains not merely people, but objects and organizations. These are collectively referred to as actors, or sometimes actants.
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Network externality theory has been defined as a change in the benefit, or surplus, that an agent derives from a good when the number of other agents consuming the same kind of good changes. Network externalities are common in technology products, usually involving communication and collaboration across multiple users, and network effects form an essential part of diffusion process. A technology/product is characterized by network externality when an increase in the number of users of the technology/product increases the value to other users, even after controlling for other characteristics of technology/product. This theory has been extensively used in IS to enhance understanding of technology adoption across myriad applications like gaming, social network services, blockchain, electronic commerce, payment systems, RFID and communication technology to name a few.
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The primary tenet of actor-network theory is the concept of the heterogenous network. That is, a network containing many dissimilar elements. These coextensive networks comprise of both social and technical parts. Moreover, the social and technical are treated as inseparable by ANT. When buying produce from a supermarket, for example, the actor-network involved would include the purchaser and the cashier, as well as the cash register, the money and the produce involved. It also includes other, less obvious objects, such as the clothes the purchaser wears, without which they would most likely not be served. The task of trying to identify all of the heterogeneous elements in an actor-network like this can be difficult, and is ultimately up to the discretion of the researcher. This is known as the problem of selection.
 
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Actor-network theory claims that any actor, whether person, object (including computer software, hardware, and technical standards), or organization, is equally important to a social network. As such, societal order is an effect caused by an actor network running smoothly. This order begins to break down when certain actors are removed. For example, the removal of telephones, banks or the president may all result in significant break-downs in social order.
 
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Source: Wikipedia ([http://en.wikipedia.org/wiki/Actor_network_theory<nowiki>])</nowiki><br>
 
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<br>
 
 
== Diagram/schematic of theory ==
 
== Diagram/schematic of theory ==
 
N/A
 
N/A
 
== Originating author(s) ==
 
== Originating author(s) ==
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Bruno Latour, Michel Callon, John Law
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Michael L. Katz, Carl Shapiro, Joseph Farrell, and Garth Saloner- Economics
 
== Seminal articles ==
 
== Seminal articles ==
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Callon, M. (1986a). ‘The Sociology of an Actor-Network: The Case of the Electric Vehicle’. Mapping the Dynamics of Science and Technology. Callon, M., Law, J. and Rip, A. (Eds). Macmillan Press, London: 19-34.
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1.    BELO, R.; FERREIRA, P. Free-Riding in Products with Positive Network Externalities: Empirical Evidence from a Large Mobile Network. '''MIS Quarterly''', ''[s. l.]'', v. 46, n. 1, p. 401–429, 2022. DOI 10.25300/MISQ/2022/14712.  
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Callon, M. (1986b). ‘Some Elements of a Sociology of Translation: Domestication of the Scallops and the Fishermen of St Brieuc Bay’. Power, Action & Belief. A New Sociology of Knowledge? Law, J. (Ed). Routledge & Kegan Paul, London: 196-229.
 
  
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Callon, M. (1987). ‘Society in the Making: The Study of Technology as a Tool for Sociological Analysis’. The Social Construction of Technological Systems. Bijker, W. E., Hughes, T. P. and Pinch, T. P. (Eds). The MIT Press, Cambridge, Ma.: 85-103.
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2.    SCHILLING, M. A. Technology Success and Failure in Winner-Take-All Markets: The Impact of Learning Orientation, Timing, and Network Externalities. '''The Academy of Management Journal''', ''[s. l.]'', v. 45, n. 2, p. 387–398, 2002.
  
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Callon, M. (1997). ‘Actor-Network Theory - The Market Test (draft)’ Actor Network and After Workshop. Centre for Social Theory and Technology (CSTT), Keele University, UK, http://www.keele.ac.uk/depts/stt/stt/ant/callon.htm, 31 July 1997.
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3.    TUCKER, C. Identifying Formal and Informal Influence in Technology Adoption with Network Externalities. '''Management Science''', ''[s. l.]'', v. 54, n. 12, p. 2024–2038, 2008. DOI 10.1287/mnsc.1080.0897
  
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Latour, B. (1986). ‘The Powers of Association’. Power, Action and Belief. A new sociology of knowledge? Sociological Review monograph 32. Law, J. (Ed). Routledge & Kegan Paul, London: 264-280.
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4.    LIN, C.-P.; BHATTACHERJEE, A. Elucidating Individual Intention to Use Interactive Information Technologies: The Role of Network Externalities. '''International Journal of Electronic Commerce''', ''[s. l.]'', v. 13, n. 1, p. 85–108, 2008. DOI 10.2753/JEC1086-4415130103.
  
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Latour, B. (1987). Science in Action: How to Follow Engineers and Scientists Through Society. Open University Press, Milton Keynes.
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5.    VISWANATHAN, S. Competing across Technology-Differentiated Channels: The Impact of Network Externalities and Switching Costs. '''Management Science''', ''[s. l.]'', v. 51, n. 3, p. 483–496, 2005. DOI 10.1287/mnsc.1040.0338.
  
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Latour, B. (1988a). The Pasteurization of France. Harvard University Press, Cambridge, Ma.
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6.    YANG, W. ''et al.'' Knowledge innovation network externalities in the Guangdong–Hong Kong–Macao Greater Bay Area: borrowing size or agglomeration shadow? '''Technology Analysis & Strategic Management''', ''[s. l.]'', v. 34, n. 9, p. 1020–1037, 2022. DOI 10.1080/09537325.2021.1940922.
  
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Latour, B. (1988b). ‘The Prince for Machines as well as for Machinations’. Technology and Social Process. Elliott, B. (Ed). Edinburgh University Press, Edinburgh: 20-43.
 
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Latour, B. (1991). ‘Technology is society made durable’. A Sociology of Monsters. Essays on Power, Technology and Domination. Law, J. (Ed). Routledge, London: 103-131.
 
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Latour, B. (1997). 'On Actor Network Theory: A few clarifications.' http://www.nettime.org/Lists-Archives/nettime-l-9801/msg00019.html. 
 
 
== Originating area ==
 
== Originating area ==
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Sociology
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Economics
 
== Level of analysis ==
 
== Level of analysis ==
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Individual, network
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Individual
 
== IS articles that use the theory ==
 
== IS articles that use the theory ==
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Bijker, W. and J. Law (eds.) (1994) Shaping technology / building society: studies in sociotechnical change, Cambridge Ma: The MIT Press.
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1.    BELO, R.; FERREIRA, P. Free-Riding in Products with Positive Network Externalities: Empirical Evidence from a Large Mobile Network. '''MIS Quarterly''', ''[s. l.]'', v. 46, n. 1, p. 401–429, 2022. DOI 10.25300/MISQ/2022/14712.  
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Bloomfield, B. P., et al. (1992). "Machines and manoeuvres: Responsibility accounting and the construction of hospital information systems." Accounting, Management and Information Technologies '''2'''(4): 197-219.
 
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Bloomfield, B. P. and T. Vurdubakis (1994). "Negotiating the Boundary between the Technical and the Social in the Development of IT Systems." Information Technology & People '''7'''(1): 9-24.
 
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Bonner, W (Bill). T. and M. Chiasson (2005). "If fair information principles are the answer, what was the question?: An Actor-Network Theory Investigation of the Modern Constitution of Privacy." Information & Organization '''15'''(4): 267-293.
 
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Bonner, W (Bill). T., et al. (2009). "Restoring balance: How history tilts the scales against privacy. An Actor-Network Theory investigation." Information & Organization '''19'''(2): 84–102.
 
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Bonner, W. B. T. (2013). "History and IS – Broadening our view and understanding: Actor–Network Theory as a methodology " Journal of Information Technology '''28'''(2): 111-123.
 
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Doolin, B. and A. Lowe (2002). "To reveal is to critique: Actor-network theory and critical information systems research." Journal of Information Technology '''17'''(2): 69-78.
 
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Hanseth, O. and E. Monteiro (1997). "Inscribing Behaviour in Information Infrastructure Standards." Accounting, Management and Information Technologies '''7'''(4): 183-211.
 
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Holmstrom, J. and F. Stalder (2001). "Drifting technologies and multi-purpose networks: the case of the Swedish cashcard." Information & Organization '''11'''(3): 187-206.
 
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Kavanagh, D. and L. Araujo (1995). "Chronigami: Folding and unfolding time." Accounting, Management and Information Technologies '''5'''(2): 103-121.
 
  
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McGrath, K. (2002). "The Golden Circle: a way of arguing and acting about technology in the London Ambulance Service." European Journal of Information Systems '''11'''(4): 251-266.          
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2.    SCHILLING, M. A. Technology Success and Failure in Winner-Take-All Markets: The Impact of Learning Orientation, Timing, and Network Externalities. '''The Academy of Management Journal''', ''[s. l.]'', v. 45, n. 2, p. 387–398, 2002.
  
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Larsen, T., L. Levine, and J. I. DeGross (Eds.) (1999) Information systems: current issues and future changes, Laxenburg: IFIP.
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3.    TUCKER, C. Identifying Formal and Informal Influence in Technology Adoption with Network Externalities. '''Management Science''', ''[s. l.]'', v. 54, n. 12, p. 2024–2038, 2008. DOI 10.1287/mnsc.1080.0897
  
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McMaster, T., E. Mumford, E. B. Swanson, B. Warboys et al. (Eds.) (1997) Facilitating technology transfer through partnership: Learning from practice and research, London: Chapman and Hall.
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4.    LIN, C.-P.; BHATTACHERJEE, A. Elucidating Individual Intention to Use Interactive Information Technologies: The Role of Network Externalities. '''International Journal of Electronic Commerce''', ''[s. l.]'', v. 13, n. 1, p. 85–108, 2008. DOI 10.2753/JEC1086-4415130103.
  
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Orlikowski, W., G. Walsham, M. Jones, and J. I. DeGross (Eds.) (1996) Information technology and changes in organizational work, London: Chapman and Hall.
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5.    VISWANATHAN, S. Competing across Technology-Differentiated Channels: The Impact of Network Externalities and Switching Costs. '''Management Science''', ''[s. l.]'', v. 51, n. 3, p. 483–496, 2005. DOI 10.1287/mnsc.1040.0338.
  
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Sarker, S., Sarker, S., and Sidorova, A. "Understanding Business Process Change Failure: An Actor-Network Perspective," Journal of Management Information Systems (JMIS), Vol. 23, No. 1, Summer 2006, pp. 51-86.  
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6.    YANG, W. ''et al.'' Knowledge innovation network externalities in the Guangdong–Hong Kong–Macao Greater Bay Area: borrowing size or agglomeration shadow? '''Technology Analysis & Strategic Management''', ''[s. l.]'', v. 34, n. 9, p. 1020–1037, 2022. DOI 10.1080/09537325.2021.1940922.
  
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Sawyer, S., and Jarrahi, M. H. 2014. Sociotechnical Approaches to the Study of Information Systems. In A. Tucker, & H. Topi (Eds.), Computing Handbook: Information systems and information technology, 3rd Edition. Boca Raton, FL: Taylor & Francis.
 
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Scott, SV and Wagner EL, (2003) "Networks, negotiations and new times: The implementation of enterprise resource planning into an academic administration," Information and Organization, v.13, issue 4, pp. 285-313.
 
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Strathern, M. (1999) “What is intellectual property after?,” in  J. Law and J. Hassard (Eds.) Actor Network Theory and After, Oxford: Blackwell Publishers / The Sociological Review,  pp. 156-180.
 
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Walsham, G. (1997) “Actor-Network Theory and IS research: Current status and future prospects,” in  A. S. Lee, J. Liebenau, and J. I. DeGross (Eds.)  Information systems and qualitative research, London: Chapman and Hall,  pp. 466-480.
 
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Walsham, G. and Sahay, S. 1999. GIS for district-level administration in India: problems and opportunities. MIS Quarterly. 23, 1 (Mar. 1999), 39-65.
 
 
== Links from this theory to other theories ==
 
== Links from this theory to other theories ==
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[[Social network theory]], [[Socio-technical theory]], network theory
 
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== External links ==
 
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http://www.learning-theories.com/actor-network-theory-ant.html, Summary of ANT by Learning-theories.com.
 
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http://www.idi.ntnu.no/~ericm/ant.FINAL.htm, Eric Monteiro's summary of ANT and information infrastructure.
 
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http://groups.yahoo.com/group/actor-network-theory/, ANT theory group discussion site on Yahoo.
 
  
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http://en.wikipedia.org/wiki/Actor_network_theory, Wikipedia entry on ANT.
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== External links ==
  
 
== Original Contributor(s) ==
 
== Original Contributor(s) ==
−
Mike Wade
+
Shalini Upadhyay
  
 
<br>
 
<br>

Revision as of 17:03, 29 March 2023

This site is sponsored by the University of Colorado


Actor network theory

Acronym

N/A

Alternate name(s)

Theory of Network Effects

Main dependent construct(s)/factor(s)

N/A

Main independent construct(s)/factor(s)

Concise description of theory

Network externality theory has been defined as a change in the benefit, or surplus, that an agent derives from a good when the number of other agents consuming the same kind of good changes. Network externalities are common in technology products, usually involving communication and collaboration across multiple users, and network effects form an essential part of diffusion process. A technology/product is characterized by network externality when an increase in the number of users of the technology/product increases the value to other users, even after controlling for other characteristics of technology/product. This theory has been extensively used in IS to enhance understanding of technology adoption across myriad applications like gaming, social network services, blockchain, electronic commerce, payment systems, RFID and communication technology to name a few.

Diagram/schematic of theory

N/A

Originating author(s)

Michael L. Katz, Carl Shapiro, Joseph Farrell, and Garth Saloner- Economics

Seminal articles

1.    BELO, R.; FERREIRA, P. Free-Riding in Products with Positive Network Externalities: Empirical Evidence from a Large Mobile Network. MIS Quarterly, [s. l.], v. 46, n. 1, p. 401–429, 2022. DOI 10.25300/MISQ/2022/14712.

2.    SCHILLING, M. A. Technology Success and Failure in Winner-Take-All Markets: The Impact of Learning Orientation, Timing, and Network Externalities. The Academy of Management Journal, [s. l.], v. 45, n. 2, p. 387–398, 2002.

3.    TUCKER, C. Identifying Formal and Informal Influence in Technology Adoption with Network Externalities. Management Science, [s. l.], v. 54, n. 12, p. 2024–2038, 2008. DOI 10.1287/mnsc.1080.0897

4.    LIN, C.-P.; BHATTACHERJEE, A. Elucidating Individual Intention to Use Interactive Information Technologies: The Role of Network Externalities. International Journal of Electronic Commerce, [s. l.], v. 13, n. 1, p. 85–108, 2008. DOI 10.2753/JEC1086-4415130103.

5.    VISWANATHAN, S. Competing across Technology-Differentiated Channels: The Impact of Network Externalities and Switching Costs. Management Science, [s. l.], v. 51, n. 3, p. 483–496, 2005. DOI 10.1287/mnsc.1040.0338.

6.    YANG, W. et al. Knowledge innovation network externalities in the Guangdong–Hong Kong–Macao Greater Bay Area: borrowing size or agglomeration shadow? Technology Analysis & Strategic Management, [s. l.], v. 34, n. 9, p. 1020–1037, 2022. DOI 10.1080/09537325.2021.1940922.

Originating area

Economics

Level of analysis

Individual

IS articles that use the theory

1.    BELO, R.; FERREIRA, P. Free-Riding in Products with Positive Network Externalities: Empirical Evidence from a Large Mobile Network. MIS Quarterly, [s. l.], v. 46, n. 1, p. 401–429, 2022. DOI 10.25300/MISQ/2022/14712.

2.    SCHILLING, M. A. Technology Success and Failure in Winner-Take-All Markets: The Impact of Learning Orientation, Timing, and Network Externalities. The Academy of Management Journal, [s. l.], v. 45, n. 2, p. 387–398, 2002.

3.    TUCKER, C. Identifying Formal and Informal Influence in Technology Adoption with Network Externalities. Management Science, [s. l.], v. 54, n. 12, p. 2024–2038, 2008. DOI 10.1287/mnsc.1080.0897

4.    LIN, C.-P.; BHATTACHERJEE, A. Elucidating Individual Intention to Use Interactive Information Technologies: The Role of Network Externalities. International Journal of Electronic Commerce, [s. l.], v. 13, n. 1, p. 85–108, 2008. DOI 10.2753/JEC1086-4415130103.

5.    VISWANATHAN, S. Competing across Technology-Differentiated Channels: The Impact of Network Externalities and Switching Costs. Management Science, [s. l.], v. 51, n. 3, p. 483–496, 2005. DOI 10.1287/mnsc.1040.0338.

6.    YANG, W. et al. Knowledge innovation network externalities in the Guangdong–Hong Kong–Macao Greater Bay Area: borrowing size or agglomeration shadow? Technology Analysis & Strategic Management, [s. l.], v. 34, n. 9, p. 1020–1037, 2022. DOI 10.1080/09537325.2021.1940922.

Links from this theory to other theories

External links

Original Contributor(s)

Shalini Upadhyay



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